Customer Profiling Using the Empathy Map

Customer Profiling Using the Empathy Map © Shutterstock.com | Dima SidelnikovIn this article, we look at 1) where product development should start, 2) the empathy map, 3) the elements of an empathy map and 4) a case study of eStudent.WHERE PRODUCT DEVELOPMENT SHOULD STARTMost successful organizations have a strong focus on customer research but fail to incorporate their customers’ perspective in the product design and even the business model design stage of the business. A smart way to go about business model design is to view it from the lens of the customer. It can lead to discoveries and insights which could help the company gain an edge in the competitive market for customer mindshare.Apple is a classic example of incorporating customer needs into product design. When Apple launched its first of its kind iPod, the market for music players was relatively low, and illegal downloading of music was the norm. The conditions were discouraging for launching an application that required consumers to buy their music online. H owever, Apple had cottoned on to a key customer gain; a singular medium on which they could sync and access all of their digital content. By providing such a medium, Apple launched itself into the stratosphere as one of the leading technological companies in the world with a dedicated customer base.Major companies invest a significant sum on attaining insight into the social and psychological makeup of their customers through employing teams of anthropologists and sociologists. However, they do so just for creating a customized product or service design. They may also find it lucrative to incorporate these experts when designing the business model for their company. Customers’ insights can be especially impactful on value propositions, distribution channels, customer relationships and revenue streams.The approach asks for a shift from an organization specific perspective to a customer-centric approach. Companies have traditionally myopically considered what it wants to sell the cu stomers, how they can be reached with the minimal expenditure of resources, the nature of relationship the company wants to form with the customer, and how it will earn money from its targeted customer segment. Conversely, the customer-centric approach demands that the company focuses on the jobs the customer needs to be done or his or her aspirations and how the company can help them achieve both. They must evaluate how the customer wants to be reached, for what value they are willing to pay and the kind of relationship they want to form the company. The company must also be cognizant of what customer segment to target. Most might invest in targeting their current or traditional customer segment, but they must not overlook the possibility of upcoming segments and methods of targeting them to improve their market shares.Do you know your customers?When an entrepreneur is asked who his customer is, it is easy to get lost in targeting everyone that their product or service would appeal to. Direct and indirect consumers are invariably linked to the business because the entrepreneur is trying to think big. However, it is crucial for the efficacy of the process to commence the discussion with who the business’ most important customers are and work from there. Starting the discussion from there, the entrepreneur must then evaluate what kind of pains this segment has, who these people are and why they would buy from your business over other solutions available in the market. Creating an empathy map for this most important customer has a twofold purpose. It helps you mold your value proposition towards the customer who will pay for it and whittle away the unnecessary things. It will also help you map out what kind of customer relationships to foster with this segment and the tactics required to create these relationships.How to discover your prospects world viewEvery person has a unique world view; a detailed descriptive model of how they think the world works. Tappi ng into your most important customer’s world view could mean deep insights into their wants, needs and psychology for your business.A world view typically dictates the answers and reactions to the following questions;What should I do next?What is truth and what is false?What actions should I take to reach my goalsHow can we make others understand our intentions?There are many actions one can take to hack into their target customer’s world view; taking interviews, reading comments on the blog of your website,   and utilize other online media where your consumers are likely to post opinions and views such as Amazon reviews, blogs, social media, etc.Difference between worldview and personasEntrepreneurs often mistake a world view with a persona because both concepts seem to overlap. However, persona refers to a group of people who have similar consumer behavior patterns i.e. regardless of their demographics they share buying patterns, their usage of customer services are similar, a nd they have similar behaviors, motivations, and attitudes.A world view on the other hand highlights why a consumer has these behaviors, attitudes and motivations as well as the reason behind their buying behavior. Hence, a world view is the foundation of the persona.THE EMPATHY MAP Most of the examples quoted here refer to major companies with the resources available to hire and utilize teams of sociologists and anthropologists to help them understand their customers’ world views. However, a new business rarely has the capital available to invest in consumer research at the same level. An equally effective yet much more wallet friendly approach could be to use visual thinking company, XPLANE’s empathy map to understand your consumer segment. Any good product, service or design is only good if it matches what a customer desires in the product. Hence, to understand what the customer wants, we can use the empathy map, one of the most simple consumer profiling tools available online. This tool allows us to move beyond the typical metrics of demographics and delve deep into the consumer psyche by understanding their environmental context, their emotions and reactions and their future goals and priorities. All this information will help a new business develop sou nder, more appealing value propositions, focus on a type of relationship which suits the customer and invest in distribution channels which match customer preferences.In short, effectively defining your customer’s world view and persona helps accomplish the following goals;Creating a more streamlined and focused strategy;Reaching your customer in a more rewarding way;Gaining insight into how your customer thinks;Identifying and employing the winning tactic when faced with a customer negotiation;Creating more attractive value propositions.What is Empathy?It is an irrefutable fact that customers who feel that a company genuinely cares about them will be more loyal. To ensure that customers buy into this emotion, an organization must display empathy in all of its dealings with its customer segments, including at the product or service design phase. The following two definitions explain the meaning of empathy in this context;The intellectual identification with the feelings, thoughts or attitudes of another;The vicarious experiencing those feelings, thoughts or attitudes.People often confuse empathy and sympathy. Sympathy is the feeling of sorrow or grief you feel for another’s misfortune, but you remain external to the situation. On the other hand, empathy occurs when you place yourself in the other person’s shoes and immerse yourself so completely in their world view that you feel the way they feel.Empathy map basicsSegment your customersThe first step is to group your consumers into distinct segments based on their demographics and personas. Once these segments have been created you need to prioritize your top three most lucrative segments.Humanize your segmentOnce you have your top three segments, you need to make them real, relatable people in your mind. This can be done by assigning fake names and building an entire person through adding details such as their age, educational level, income etc. in this way it becomes easier for you to empathize with th is representative of your segments.Empathize with your segmentIn a team put your representative from each segment on an empathy map. Then start asking the following main questions and thinking of the answers from the representative’s point of view. Since this is a group exercise, this will result in a comprehensive list of answers to the questions;What thoughts does this customer normally have and how does he usually feel?What or who does the customer normally listen to?What does the customer see?What does this customer say and do?What is this supporter’s pain?What is his gain?Validate your empathy mapOnce you have this comprehensive list mapped, it is necessary to validate it with actual customer responses. You can have a test group of sample customers from the segment itself answer the same questions and correct any responses if you feel the need to.[slideshare id=24974009doc=empathymaperis-130806031419-phpapp01]THE ELEMENTS OF AN EMPATHY MAP © Flickr | visualpun.chThe Empathy Map is built around the senses; how we receive information through them and how we interpret this information. It also takes a look at customer gains and pains.Element 1: SeeCustomers are constantly creating a persona for your brand in their minds based on what their senses perceive regarding your company. Hence, all visual elements linked to your brand need to be consistent in the message they are sending out. Alignment in your web presence, social media profiles and reviews needs to occur for your customers to form a brand personality that is consistent with the one you want to achieve.Some questions you can use to profile your customer for this element are as follows;What do they see?What does their environment consist of?Who are the other individuals who form a part of the customer’s environment?What kind of product offerings do they see?What kind of issues and challenges do they usually have?Element 2: HearAs with the previous element, all a udio content connected to your brand needs to be in cohesion. Advertising and promotional content are generally closely monitored by the marketing team of any firm. However, simple yet impactful mediums such as how your customer representatives or internal call routing system also sounds leave major impressions with your customers.The following questions can clarify what the customer focuses on where the auditory sense is taking into account;What kind of ideas, information and opinions are being shared with your target customer by their friends and family?What kind of things do they hear at work?Who are the people they are most influenced by?What are the mediums and tactics used to influence them?Element 3: Think and FeelIt is paramount for the owner of a new company to be aware of how customers are responding to the product or service. For a company to capture and keep its customers, they need to be cognizant of who their happy customers are and whether they are willing to act as c hampions for your product, as well as those who are indifferent or outrightly unhappy about your product. Keeping an eye on and investing in the latter is a prudent strategy because these customers may end up maligning your brand image.Following are questions to consider for this element;What is their core yet unexpressed priorities?What causes an emotional reaction for them?What are their dreams and goals?What worries keep them up at night?Element 4: Say and DoAs an entrepreneur, you need to be plugged into the level of convenience you offer customers with your product and service. You also need to keep your ear to the ground, so you know what customers are saying about you, garner improvement areas if any and deliver on these areas.What is their behavior when they are surrounded by people?What, according to them, are their priorities?What is the gap between what they express and their actual actions?Do they act as influencers and opinion leaders for others?Element 5: Customer Pain sThese are the problems and challenges that the customer faces everyday. They refer to unmet needs and desires which cause negative emotions within the customer.What are their main concerns or causes for frustration?What stands between them and reaching for their aspirations?What are the methods they employ to reach their goals?Element 6: Customer GainsThese are elements that add to the customer’s quality of life. They may not result from an expressed need, but they make the customer’s life easier and more convenient through their existence.What are their expressed goals and needs?What is their metric for measuring success?What are the methods they employ to achieve success?Extreme Characters in Empathy MapsWhen looking for an innovative and completely fresh business model, it may be fruitful to invest in research into extreme users of your products and services. Extreme users are people who do not fit into your regular customer segment. They are on the periphery but observing t heir usage of your product or service opens up the possibility of a whole new market for you.These users are heavily invested in your products, or they use your home customized versions of your customers. Hence, if you as a company are seeking to solve customer pains such as sweaty feet or blisters, a good customer segment to connect with could be people who have to wear uncomfortable shoes on a regular basis like dominatrices.Talking to such extreme users could open you up to game-changing breakthroughs that previously hadn’t occurred to you. And because these consumers represent an untapped market they will be more forthcoming with their feedback and recommendations because they are heavily invested in your product.CASE STUDY â€" eSTUDENTeStudent is a university-based social networking site which aims to provide a platform for new students to connect with each other and discover activities of their interest on or around their campuses. Hence, each University will have its estude nt network exclusive for its students. An empathy map for this blog will contain the following;The customer university may see that the information on the network is disorganized and wonder if any of the students will use it or not. They may see that it has too much information or that their university isn’t included on the platform.Universities may hear that all plans are already posted on facebook and hence question the efficacy in investing in the system. They may also wonder at the lack of usage the network provides to older members of the University.The clients thoughts can include the privacy level the network provides whether they need to create log-ins if they have to pay for using it, etc.The target customer may say that the webpage does not offer much visual appeal.The customer pains would be the high investment required to develop the network as well as whether the information exchanges is valid or not.The customer gains are introduction to new people, and finding activ ities 24/7. Image credits:  Flickr | visualpun.ch under Attribution-ShareAlike 2.0 Generic.

Sarbanes-Oxley Act - Free Essay Example

Implementing Sarbanes-Oxley within an Environment: Understanding the controls used to implement Sarbanes-Oxley within an environment Recent high-profile corporate scandals (Enron, WorldCom, Tyco and Arthur Andersen etc.) have shattered the trust, of shareholders, legislators and authorities, in major publicly traded companies and have raised concerns for the state of corporate governance, not only in the United States, but also in other countries of the world. The United Kingdom is not immune to the wave of business fraud, corporate scandals, legislation changes and corporate environment restrictions. With the filing of bankruptcies, the US government had taken immediate action to prevent fraud in the future by enacting the Sarbanes-Oxley Act of 2002 (SOX), administered by the Securities and Exchange Commission (SEC). Similar restrictions and legislations have also been adopted in the UK, in an attempt to curb fraudulent acts from proliferating to the other side of the Atlantic th rough multinational public companies trading in the UK. SOX is a legislation designed to eliminate financial fraud and misstatements by greedy executives, unethical corporate practices and non-transparent business transactions. While SOX has redefined the roles, responsibilities and expectations of the board of directors, internal and external auditors, it has also reformed the practices within organizations. At the heart of the enactment of SOX is the implementation of control to oversee senior management, to secure accurate financial reporting information. Two major requirements of SOX are disclosure of material events and contingent liabilities (Rasch 2005). For this purpose, the role of information technology security has become enhanced, as it is expected to ensure transparency in decision-making, reliability and integrity in the system of disclosure. Yet IT experts are of the view that IT has a vague role in making SOX effective. IT security in SOX context is limited to the extent of enhancing reliability and integrity in reporting, and it does not contribute towards prevention of fraud or unethical corporate behaviours. It cannot prevent senior management from engaging in financial misstatements; neither can it curb executives from over-arching organizational controls and processes. The questions that arise then are à ¢Ã¢â€š ¬Ã‹Å"what is the role of IT under SOX? What are the scope, narrative and control matrix for IT professionals within SOX environment? Are the frameworks for SOX implementation effective in achieving SOX objectives?à ¢Ã¢â€š ¬Ã¢â€ž ¢ Before the researcher attempts to answer these questions, a brief background to the emergence of SOX, and why it is needed, must be explored. The turn of the century saw a series of corporate scandals of companies such as Enron, WorldCom and Tyco etc. Their executives had been involved in unethical corporate practices that affected shareholders and stakeholders, alike. Enron and WorldCom filed for bankruptcies (which were followed suit by others) as a result of fraudulent accounting practices and executives greed. Not long before the issues surrounding Enron and WorldCom were resolved, Arthur Andersen, the auditing firm, was charged for malpractice, especially in non-disclosure of fraudulent financial transactions and reportage. At the time, not only the morals of corporate executives had come under scrutiny, but the gatekeepers of the same companies, namely the auditors, had also been questioned of their ethical conduct. The environment of corporate America had become scandalized. The public had become concerned and demanded immediate reforms for curbing more firms from engaging in similar practices. The demand for vigilant corporate governance, in the form of policies, as well as law, increased. The collusion of financial reporting fraud and audit fraud had led to the need for provisions that would keep tight control over accounting and auditing activities, and to mandate c ompliance procedures that require executive certification, independent audit, and provisions for binding organizations to securities regulations (Romano 2005). The onset of the election, as well as the anxious public, pressured Congress to pass a legislation to indict companies for fraud and to restate the status of the American economy. The result had been the enactment of the Sarbanes-Oxley Act of 2002. The Act, according to Rasch (2005), imposes significant accounting and control requirements on U.S. publicly owned companies (and probably on foreign companies which are either traded on U.S. exchanges or which make up a significant part of a U.S. companys financial reporting). SOX addresses the Enron scandal by establishing controls that would require the need for paper trails of audit activities; it mandates auditor independence; it enhances corporate responsibility; it requires executive accountability; and, more importantly, it establishes control systems by setting a series of compliance policies (Rasch 2005). Control refers to processes, in business or IT environment, whereby, internal controls over financial information generation, access, collection, storage, processes, transmission and usage are governed by a set of guidance. To formalize, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) provides guidelines for financial reporting processes and financial information recording, storage and access. Similarly, for IT auditors relevant guidelines, COBIT (Control Objectives for Information and Related Technologies), had been formed to provide an open standard established by the IT Governance Institute (ITGI), and the Information Systems Audit and Control Association. In the UK, this type of internal controls have been taken up by the IT Infrastructure Library (ITIL), published by the Office of Government Commerce (Rasch 2005). The basic premise for adopting the SOX standard (in the UK or otherwise) for internal controls over IT infrastructure, is to ensure no repetition of the American dilemma, should it occur among UK corporations. After the American scandals, the government and securities commission realize there is a great need for internal controls to emphasize disclosure, both in terms of material events and contingent liabilities, to prevent bottom-line impact. Moreover, SOX is primarily enacted for the purpose of setting standards for accurate financial reporting information. Since, in modern organizations, there is a great reliance on information technology for transfer, store, access and process information, this means IT and its systems have to be reliable and dependable, in order to gear for transparent transaction, certification and compliance. However, before one can fully establish IT responsible for effective SOX compliance, one needs to understand that accurate financial reporting entails processes and elements that do not necessarily have direct link to financial reportage. For example, decisions of board of directors, top company officials, as well as internal and external auditors, securities exchange authorities and so on (Tighter Sarbanes-Oxley Called For 2007), may not necessarily link with IT. Similarly, processes of risk assessment, control activities, monitoring, information and communications form the basis for accurate financial reportage. IT facilitates these activities, but may not be contingent for its accuracy. For these reasons, SOX has established sets of compliance and controls for companies to follow (Caterpillar and Internal Controls 2007). Although, the details of these compliances do not identify IT responsible for controlling fraud per se, nevertheless, it does enhance the role of IT departments and professionals within companies as gatekeepers. For example, Section 404 requires checking of internal controls, which means the implementation of COSO Framework is necessary. In Chans (2004) work, the author outlines that the Public Compa ny Accounting Oversight Board (PCAOB), which sets auditing standards under SOX, refers to IT as affecting companys internal control over financial reporting. She writes: Because systems process and system-generated entries are an integral part of financial reporting, general IT and application controls should be documented and evaluated based on a disclosure and management assessment framework that is compatible with business-process mapping, to enhance consistency and quality. By the same token, the IT environment must be reviewed, along with the overall control environment, for the organization. Simply put, IT governance is an essential component and contributor to financial governance. (Chan 2004). In this context, IT becomes the processing environment that holds many key controls critical for SOX compliance. However, before one can qualify an organization as SOX compliant, its IT control activities need to meet specific criteria. Chan (2004), for example, points to the follow ing assessment criteria: a. IT dependent business environment b. IT processes significant to business activities c. deficiency in IT solutions d. high risk due to computer operations e. organization processes, especially financial reports, dependent on computer processing. f. business based on enterprise-wide systems g. financial application systems used for transactions, interaction and recording of accounts h. dependence on IT processes for enterprise business end-to-end processes i. IT processes managed by third party outsource Apart from the above, the ITGI considers management of IT risks critical for IT governance and compliance. Risk, according to its report, exposes organizations to IT failures. IT related risks impact on business by exposing the business to operational crash, security breach or failed project. Technical complexity, dependence on service providers, limitation of reliable risk-monitoring information systems result in improper gov ernance and risks. Implementation of frameworks, such as COSO, develop readily usable enterprise risk management programmes. Moreover, they provides guidance and direction for overcoming risks, and implement corporate governance, new legislations, regulations and standards (ITGI 2005). Chan (2004) further notes that SOX compliance means reporting rise from the transaction level all the way to its final destination in the financial statements. Processes involved in dissemination of information related to it, depend on the manual and automated controls of the IT framework. For this reason, IT control weaknesses often result in poor compliance and accountability. IT controls, therefore, must be business-driven. More importantly, it must follow a standardized framework that separates common information from sensitive ones, to minimize risks, as well as promote harmonization, of IT, internal auditing, finance and business units. SOX does not require organizations to simply implement s tandard controls, but rather encourages organizations to assess and evaluate internal controls to devise efficient and least intrusive control information documentation, policies and methodologies (Chan 2004). Having said that, experts (Kendall 2007; Carter 2007; Roth 2007) are of the view that SOX compliance is still at its rudimentary stage as organizations in America and in other parts of the world are still grasping its compliance mandates. Kendall (2007), for example, cites organizations as still uncertain of an effective system of control over financial reporting. Provisions within SOX do not provide guidance for successful implementation of controls based on SOX mandates. As a result, companies are relying on their internal controls assessments and testing, to achieve control objectives relevant to SOX requirements, such as examination of risks, create IT risk inventory, reducing controls, consolidating controls, standardizing processes, monitoring changes and streamlining processes. Carter (2007) notes that CSA (control self-assessment) techniques are useful in identifying opportunities for improvement. The technique involves bringing together individuals from different business units of the organization, to gather information on company processes. The session encourages evaluation and redesigning of processes to provide accurate and timely documentation, financial and otherwise. Roth (2007) notes that the ERM (enterprise risk management) technique implies that SOX compliance does not necessarily result in prevention of fraud in the IT context. In fact, other frameworks are more effective in identifying, monitoring and assessing risks associated with IT systems and processes. As mentioned earlier, SOX does not really specify any framework for implementing internal controls. It merely mentions Internal Control and Integrated Framework. Internal control is just as ambiguous, as it means different things for different people. It is likely that misco mmunication may occur as a result of different expectations and perceptions of internal control for SOX compliance. For example, internal control, according to COSO, can be defined as, a process, effected by an entitys board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives (COSO 2004). However, for different organizations, the composition of these elements and processes may differ. Furthermore, according to Damianides (2005), SOX legislation has created a great need for business to have IT internal control in place, to ensure data reliability and maintenance of ethical activities. It requires processes to be aligned with the Acts Section 302 and 404. Section 302 entrusts the responsibility of financial statements certification and disclosures to CEOs (chief executive officers) and CFOs (chief financial officers), while Section 404 requires internal controls of financial reportage without actually outlin ing guidance or procedures for implementing them. Indeed, it has been the ITGI that has come up with the COSO international control framework for financial reporting. The COSO framework is based on the following objectives: Effectiveness and efficiency of operations Reliability of financial reporting Compliance with applicable laws and regulations Thus, internal control is a process, affected by people and expected to provide reasonable assurance and achievement of objectives of one or more overlapping categories (Damianides 2005). The COSO framework follows the Public Company Accounting Oversight Board (PCAOB) and addresses issues related to: * Segregating accounting duties. * Developing effective boards and audit committees. * Managing with wider spans of control. * Implementing sound information technology controls. * Documenting the design and operation of controls. (Rittenberg, Martens and Landes 2007). The COSO framework outlines principles and components for effective risk management processes as well, which is why it is often confused with the ERM (enterprise risk management). The implementation process of COSO involves identification, assessment, response and controls set up and aligned with its strategic plans. The framework emphasizes on enterprise risk management responsibilities and activities that would result in achieving organizational objectives. To ensure that management processes are in place and function according to SOX compliance, an integrated framework can be set up based on COSO guidance. It encourages identification of risk, assessment of companys strategies, and ways to invest in setting up an internal control framework such as investment in effective ERM, establishing effective technology controls and relate it with financial reporting. COSO implementation differs from other internal control framework, as it is broader and incorporates concepts from various risk management strategies, set up and t echniques. It requires external and internal control for financial reportage for SOX Section 404 compliance. As a result, not only the board of directors, but management executives, along with CFO and CIO, become part of the disciplines and procedures for establishing internal control framework (COSO 2004). On the other hand, non-compliance of COSO implementation may result adversely in terms of non-systematic approach for controls or incomplete controls set up, weak and inefficient control environment, which may result in inadequate processes and reportage (ITGI 2006). According to COSO (2004), ERM integrated framework significantly reduces risks for all types of industries, as this framework recognizes effective enterprise risk management processes and applies it in the context of strategic development. According to Ramos (2004), the COSO framework divides IT controls into computer controls and application specific controls. On the other hand, the ERM framework requires ongoing fe edback of information from throughout the company (COSO 2005) to support risk assessment. Similarly, the ITGI also developed COBIT (Control Objectives for Information and related Technology) to address the need for frameworks that address IT issues and provide guidance for IT professionals. COBIT involves provisions of information for achieving organizational objectives, IT processes and resources management. The framework provides a standardized guidance resource for structuring IT controls to comply with Section 404 of SOX (Damianides 2005). Thus, COBIT represents a collection of documents that provide guidance for IT governance, control and assurance. According to the ITGI (2006) report on COBIT, it is a framework for comparing with other frameworks, and provide guidance for process compliance and improvement. The role of IT is magnified under this framework as it addresses issues related to IT by mapping its activities to business drivers, and outlining risks of non-complianc e such as: à ¢Ã¢â€š ¬Ã‚ ¢ Misaligned IT services, divergence à ¢Ã¢â€š ¬Ã‚ ¢ Weak support of business goals due to misalignment à ¢Ã¢â€š ¬Ã‚ ¢ Wasted opportunities due to misalignment à ¢Ã¢â€š ¬Ã‚ ¢ Persistence of the perception of IT as a black box à ¢Ã¢â€š ¬Ã‚ ¢ Shortfall between managementà ¢Ã¢â€š ¬Ã¢â€ž ¢s measurements and expectations à ¢Ã¢â€š ¬Ã‚ ¢ Know-how tied to key individuals, not to the organisation à ¢Ã¢â€š ¬Ã‚ ¢ Excessive IT cost and overhead à ¢Ã¢â€š ¬Ã‚ ¢ Erroneous investment decisions and projections à ¢Ã¢â€š ¬Ã‚ ¢ Dissatisfaction of business users with IT services supplied (ITGI 2006). Under the COBIT framework, organizations must satisfy the quality and security requirements of their information systems for all assessments. The management has the principle role in optimizing IT resources through applications, infrastructure and personnel usage. The process involves entrusting responsibilities and objective achievements throug hout the organization, through an enterprise wide IT architecture. Unlike the COSO framework, COBIT provides guidance for good practice for domain processes within the framework, including specifying activities and executing processes. However, its main focus is on internal control, rather than merely on execution, as COBIT identifies control objectives for planning and organization; acquisition and implementation; delivery and support; and monitoring and evaluation to be integrated within the IT infrastructure. This ensures the internal control system is in place within the IT environment (ITGI 2006). In line with the above, ISO 17799 has also been established to measure security controls within an IT environment. ISO 17799 emerged as Information Security Code of Practice from the UKs Department of Trade and Industry and revised by the British Standards Institute in 1995. It underwent many changes before it adopted its present status. The document outlines a set of standards tha t covers organizational security, asset classification and control, personnel security, physical and environmental security, access control, system development and maintenance, business continuity management and compliance (ISO 27002 Central 2007). In addition to ISO 17799, a revised version BS7799-2 / ISO27001 in 2002 has been published to add specification for Information Security Management System (ISMS). This part takes into account of measure, monitor and control of security management (ISO 27002 Central 2007). ISO 17799 implementation involves organization of different areas of the business within its framework. For example, setting up of objectives to ensure business activities and processes are not disrupted by developing system access control of information, unauthorized access, network security, unauthorized computer access and ensure information security is in place for mobile computing. Furthermore, ISO 17799 also have provisions for system development and maintenance th at ensure operational systems, data application systems, confidentiality and integrity frameworks. Under the ISO 17799 framework, controls are defined through legal and business requirements, cost of implementation and potential impact of security breach (ITGI 2006). The ISO 17799 framework not only ensures compliance through security, but also extends external controls to avoid criminal or civil law, statutory, regulatory and contractual activities (ISO 27002 Central 2007). Overall, it is the organizations security, which is the main objective of ISO 17799. However, in terms of SOX compliance, this framework is limited as it focuses on IT control implementation exclusively (ISO 17799 and Computer Security News 2007). Even though it does not relate to SOX entirely, non-compliance exposes companies to risk of information disclosure, such as loss of confidence and trust; incomplete risk assessment; lack of security awareness within the organization, third party interaction and interfe rence in the organization; and flawed procedures (ITGI 2006). The ITIL is another framework based on a series of publications of eight books that outline best practice for IT service management. It has been established by the Central Computer and Telecommunication Agency (CCTA) (or British Office of Government Commerce) (ITGI 2006). ITIL defines service processes, quality, objective and implementation of control for IT organization. The books are guides for addressing effective IT function through operation and maintenance of existing systems; development of new systems, and adjustment of service delivery for evolving requirements of the business. The key concepts that ITIL addresses are holistic IT service management and customer orientation. The processes involve incident, problem, configuration, change, and release management, apart from best practices, such as service level management, financial management for IT services, capacity management, business continuity and availabi lity management Non-compliance results error-prone support processes (ITGI 2006). Despite the presence of these frameworks (and many others), there are no guarantees for financial reportage exposure to data risks. According to Brown and Nasuti (2005), these frameworks do not necessarily mean SOX compliance, as they are dependent on the companys ability to identify, choose and implement particular framework(s). They are of the view that the frameworks adopted contribute towards strategy, architecture and planning of IT processes and enables executives to manage, anticipate and assemble technologies and methodologies for continuously improving IT environment, but they do not help prevent fraud. SOX provisions are applicable not only in publicly traded companies, but also in internal control environment of private companies, though their processes may differ from firm to firm. The choice for adopting particular framework, thus, depends on the efficacy of IT infrastructure alignment with the business objectives, the challenges it poses to IT governance, systems development and competencies and change management initiatives. It also depends upon the implementation of risk management approaches and ways organizations identify success factors for implementation. SOX complexity does not end in the choice of framework or effects of non-compliance. SOX audit is an area that has raised major concerns among auditors. Auditors are responsible for bookkeeping, financial information systems, valuation services, investment services, legal services and actuarial services that are related to managerial functions and investment activities. Yet SOX provisions, according to Tackett, Wolf and Claypool (2006), prohibit consulting activities by independent auditors. The restriction includes management assessment and attestation on effectiveness. The basic premise for setting these restrictive provisions is to curb independent auditors from assisting management in establishing i nternal controls for management processes, delegation and responsibilities. SOX compliance, though, allows for corrective feedback, testing of activities, and assistance in approval of processes, it does not provide interference from independent auditors. As a result, SOX audit provisions mandate self-audit by non-audit consulting service providers. It also mandates auditors to provide one report on financial statements, and 3 relating to ICOFR (internal controls over financial reporting), so as to ensure reports are independent and may contain unqualified opinion over internal control of financial reportage. SOX enactment has demonstrated that there is a great need for improving corporate responsibility and restore investor confidence in the US public companies. The setbacks by corporate scandals have intensified the need to establish regulations that would apply strict rules for accountability, disclosure and reporting (ITGI 2004). The emphasis on Section 404 requires senior ma nagement and business owners to reconsider their present internal control structure. As compliance to SOX means redesign of internal control structure, where IT plays a critical role nowadays, for financial reporting processes, organizations are gradually appreciating the mandates outlined by SOX. However, for the majority, there is still a gap which SOX has not addressed: ITà ¢Ã¢â€š ¬Ã¢â€ž ¢s role in SOX. Since SOX has not clearly identify IT control as part of SOX compliance, nevertheless, IT has become an apparent vital internal control, as without IT systems, data and infrastructure components financial reporting would have been incomplete. This distinction leads the researcher to understand that IT has the critical role of laying the foundation for internal control for SOX compliance. This is inherent in the fact that modern organizations use information technology and their system for establishing control over financial reporting. IT internal control is synonymous with gate k eeping and, in essence, meets the requirements of SOX. Given the above rationale and background, the researcher proposes research in the following contexts: What are the scope, narrative and control matrix for IT professionals within SOX environment? Are the frameworks for SOX implementation effective in achieving SOX objectives? How can organizations identify, choose, create and implement a control matrix that is congruent with SOX compliance keeping ITs role in mind. And lastly, how can organizations enhance the role of IT internal control in SOX compliance? The researcher understands that there is a critical link between SOX compliance and IT, as it has been emphasized by the various frameworks recommended by SOX. Even though SOX does not specify which frameworks to choose, the researcher assumes that current frameworks established by ITGI, CCTA and ISO are the ones accepted by the law, organizations and professionals. The researcher also assumes that SOX co mpliance has become a mandate, rather than an option. In the research that ensues, the researcher shall assume that organizations that adopt SOX compliance have defined IT infrastructures and are keen on building upon IT internal control, conducive to transparent, accurate and reliable financial information. However, these assumptions place certain limitations in the research. They exclude organizations, which may not have adopted IT infrastructure for financial reporting, such as small private enterprises, which are not required by law to disclose financial information to the public. They also limit the study to organizations that are not affected by SOX, for example, foreign firms that do not rely on IT systems for financial reporting and are not affected by US laws. Nevertheless, the researcher is of the view that IT internal control is not only a SOX compliance mandate currently, but also a requirement for successful organizations. It is important for organizations to have in ternal control in place, regardless of SOX compliance, in order to remain competitive in business. For these reasons, the researcher shall bypass the limitations and assume that organizations, whether large or small, require SOX internal control frameworks for compliance. The purpose of the research is to explore SOX in the context of IT internal control frameworks. As outlined in the above literature this is critical for SOX compliance as well as for laying the foundation for IT infrastructure building. Thus, the research shall be relevant to legislative officials and SOX compliant interpreters who need to understand the gap, if any, for compliance. Moreover, it is relevant for IT professionals who are involved in exploring, establishing and aligning IT control within the SOX context. They would find the study enumerative in understanding IT relevance under SOX as well as how they could better its objectives. For student researchers, the study may act as a platform for furtherin g research in the areas of IT internal control matrix, frameworks creation and competitive advantage through SOX compliance, which shall be touched upon briefly. Academicians shall find the research enumerative as it explores various options for SOX internal control frameworks through a study of dimensions in implementation. The choice for research methodology largely depends upon the concepts being explored. The validity of the choice of research methodology also depends on the issues rationale adopted for discussing the topic. In the course of the research conducted for the proposal the researcher has found that understanding SOX compliance may require a theoretical exploration and at the same time measurement for its effectiveness and efficacy. In this context, the researcher may adopt a quantitative or qualitative approach. Quantitative approach refers to quantitative measures based on primary observations and empirical findings (Stenbacka 2001). On the other hand, a theoreti cal exploration requires a qualitative approach. Qualitative research involves extensive research based on concepts, theories and ideas studied by other experts before the researcher can reach to his/her own conclusions (Sykes 1991). This is not all; research approach choice also depends on reasoning. Critical thinking requires that one understands the rationale behind the results acquired. Rationale choice can be categorized into inductive or deductive. Deductive reasoning refers to a process of generalization before narrowing it down to the research problem or issue. Alternatively, inductive reasoning refers to inquiries that is based on specific problem or issue, and explore it to establish generalizations. Whichever the rationale approach adopted the researcher must determine it in the context of its relevance to the research problem (Hyde 2000). In the context of the above proposal, the researcher shall aim to adopt a combination approach of quantitative and qualitative m ethods so as to comprehensively test the validity of the questions proposed. The combination of deductive and inductive reasoning on the other hand shall enable the researcher to understand the problem issue of SOX compliance within the IT environment dynamically. References Author not available (2007) Caterpillar and Internal Controls Sarbanes-Oxley UK. Online accessed on 22 June 2007 from: https://www.sarbanesoxleyuk.co.uk/asarbanesoxleyuka366306.htm Author not available (2007) Tighter Sarbanes-Oxley Called For Sarbanes-Oxley UK. Online accessed on 22 June 2007 from: https://www.sarbanesoxleyuk.co.uk/asarbanesoxleyuka366211.htm Brown, W. and Nasuti, F. (2005) What ERP systems can tell us about Sarbanes-Oxley. 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