Tag Archives: Jaguar

January 14, 2025 · 00:57

In stages

That is where a lot of us are. We are looking at some thingamajig (not to be confused with a doohickey). And as such we evolve our way of thoughts. My initial thoughts in such a direction was a classic. It concerned the Citroen DS, I think it was about 3-5 years ago.

I always loved that car and I got to thinking. What if we switch the engine and add a battery. Suddenly the classics from our youth are blown in new life. It is not an outlandish thought. Todays more and more cars look so alike and are decently ugly, as such we might not like those cars. There is something appealing to drive an optional classical Jaguar, Volvo S80, Austin FX4 (the London taxi edition) and we might have numerous reasons for whatever car we want. I found out last year that someone is actually doing this, so that made me happy. Although they did it on some Mercedes worth millions. I was hoping for a setting cheaper than that. It would breath life into the automobile world. I think that it has a future. 

The second stage in this was that I (sort of) fell in love with a watch. The Versace watch, I am not an outspoken fan of Versace. I have nothing against them, but it was never my brand.

This watch was immaculate. Still I am happy with my Google Watch 2 (even as they are a bit of a dick at this moment). I need the Google Watch for a reason (the pedometer is supported in one case) that is why I need it. But I do use the weather part now as well. I also designed a face that has functionality I need, but I am not a programmer. And as such I am a little stuck. Still there is a point here. You see, plenty of people need their Apple or Google Watch, wouldn’t it be great if there was an option to ‘transplant’ that functionality to a Versace, Breitling or Tudor Watch? You see, we have the watch, but most of the settings are transferable to lets say the strap of the watch. Now consider that it needs to be transferable to the brand strap, with an optional new strap designed for that function. Now we could have the watch we always wanted with optional smart watch functionality. I don’t thing we could transfer everything, but plenty of things are a new option in such watches. Perhaps Google could look into that (in stead of harassing people 4 times a day to activate the backup setting). I think that the new hype will be unison of functions and I reckon that this is what 2026 will bring. I think that the smart watch was a stepping stone. I am not saying it is the end of the Smartwatch, that will continue. I reckon that plenty of people want a new setting and optional in different directions as well.

Consider the vloggers in this world. There are roughly 65 million of them (TikTok and YouTube). Wouldn’t it be great if we could transport the weather icon from the watch directly to your recording? 

It would be great for all these walkabout vloggers and there are millions of those. Optional the time as well (not at the same time). All options that have been out in the open for over two years. So where were Apple and Google with their ‘innovative’ minds? 

And when that door opens I reckon the boffins of these two places will have a larger collection of ideas. The players on the vlog play is also mostly limited. Apart from the Apple and Google devices, where instant adaptability is found, they for the most need to adhere to DJI and GoPro. After that the rest will follow suit (as they say). So what kept them?

That is the food for thought I leave you today. Have a great day.

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May 3, 2019 · 12:41

The trivial and the not so

First the trivial, although $1.66 billion is no trivial matter, it is now one week that Avengers Endgame is in play (for a few countries 8 days) and it has made a staggering $1,664,151,786 so far, and it is now in 5th position on the list of biggest box office successes in the world right behind Avengers: Infinity War, It will not surpass that before the end of the weekend I reckon, yet by Sunday evening it will surpass both its older brother as well as Star Wars, the Force Awakens, less than two weeks and it will be nipping at the heels of the 20 year standing record of Titanic, the movie is going that fast and there is no stopping it, people want to see it more than once (I would really like to see the 3D version) which was not available to me on opening night. At this point 50% of the top 10 most successful box office titles are all Marvel titles. It made me think back to a conversation I had with some director on how he thought that Fantasy movies had no place to go in the 80’s at the Rotterdam ‘Lantaren Venster’ film festival. That conversation is currently making me giggle, the man was sincere in his belief and that is fine, and just like the Deer hunter is not for everyone, neither is Monster Inc.; we all have different takes on what we call entertainment and what we want to see on the big screen, yet I never forgot his view and me being the eternal diplomat remarking at that point to him on how amazing the movie Krull was (I had a mean streak in those days), and with actors like Liam Neeson (Kegan) how could it not be? He was not stricken with a sense of humour, let me assure you of that.

I never had any doubt that Endgame was going to get where it was now, yet the speed at which it did blew me away, it still does. The fact that during the week, in what is usually regarded as the lull of movie incomes, Avengers: Endgame added half a billion like it was a casual shower moment for Scrooge McDuck inside the United States Mint.

As for the not so trivial we need to take a look at Tesla. The Guardian gave us yesterday (at https://www.theguardian.com/technology/2019/may/02/tesla-elon-musk-raise-money-stocks-bonds) ‘Tesla seeks to raise $2.3bn after concerns it is running out of money‘, even as the newspaper is giving us: “Company announced last week it had lost $702m in the first three months of the year and sold 31% fewer vehicles in the first quarter“, that does not mean that we should go all negative on Tesla. Yet the part that does give rise to concern is: “Founder Elon Musk has previously dismissed the idea of raising more money but in the last earnings call said: “Tesla today is a far more efficiently operating organization than it was a year ago. We’ve made dramatic improvements across the board. And so I think there’s merit to the idea of raising capital at this point.”” When I see ‘a far more efficiently operating organization than it was a year ago‘ I wonder what that is based upon. Consider the cost of being somewhere, why is Tesla in two locations in Sydney, have Sydney sales given rise to a second store? They did the same thing for Melbourne, Amsterdam the Netherlands and we could go on, but when you realise that these are premium locations no matter where you are in the city, having an American approach to locations in Europe, your logistical cost will go through the roof and that is what is happening. The same for Sweden, yet there the cost setting might differ considerably and having part in Täby might make sense, although there are alternatives near Solna as well, perhaps it was a good deal. Now there is a second part, are these Tesla ‘owned’ places or are they independent dealers? No matter what, there are larger costs to consider like displays, parts to show and other items, and many of these places are in expensive areas, now we can agree that there might need to be one, but two?

It goes further that; it is not merely about the stores, it is about awareness to a much larger degree. You see charging the car is still an issue and yes there are solutions. Some look at the home charging solution. Yet consider the amount of energy required, your electricity bill will skyrocket. Now, there are alternatives, first there are solar panels and there we see: “This is why pairing a charging station with a solar panel system is a great solution for EV owners and solar panel owners alike“, I am less optimistic. Depending on several factors you could need up to 70 panels (low end 1kWh a day panel), and when we start looking at the options, when we go for a generic 7kWh solution, we get an annual average of anywhere between the numbers of 20 – 29 kWh daily created. Now this is merely one third of your battery, the question becomes, so you need a 100% every day? When we go commercial sized (30 kWh) we see that the production get to be between 86-133 kWh a day, so basically that takes you off the grid and give you a daily 100% charge, yet the price is also there. At prices that go up to roughly $30,000 – $40,000, now this is not to scare you. Consider that the car ‘fuel’ is free from thereon after, also your house electricity bill is reduced to almost zero, even better you can sell your excess energy to the energy provider, so there is that, but is that what you were after?

Why does this all matter?

It matters as I went to see a Tesla a few weeks ago, merely because I was curious and the Black Men’s Corp Jacket looked appealing for the upcoming winter ($120, which I did not get), and the Models looked pretty cool too (so did the Roadster), yet when I looked into charging, there was a little vagueness (unintentional mind you) they showed the charging unit, and it got me to think things through. I got from more than one source relative the same results “the average petrol car in Australia uses 11.1 litres of fuel to travel 100km (Australian Bureau of Statistics). That’s a cost of $16.65 to travel 100km at $1.50 per litre2. Even a very efficient diesel vehicle (5 litres per 100km) will cost $7.50“, most sites were all about how much cheaper the electricity was, not how much it would cost, so I got one result giving me “the average price for electricity per kilowatt hour (kWh) in Australia is about $0.25 and it takes around 18 kWh to travel 100km in an average EV. So, it will cost approximately $4.50 in electricity charges to travel 100km“, now we have something to work with. If you take the average annual driver distance (20K and divide that by 100) we now see that you are facing an optional saving of $900, not something you can ignore, but we all forget the infrastructure and now my panel viewing becomes important. If we see the brownouts that are going on all over, the switch to Tesla means that the price of electricity goes through the roof at some point, a shortage will do that for you, when everyone needs more electricity, prices go up, and that initial 30 kWh solution now becomes a more interesting money maker, but overall it is not the only path or method to rely on. You see, when the price changes we suddenly see that the $900 savings become a mere $420 savings, yet on the other side your electricity bill rises steadily and with the panels you avoid that 100%, optionally adding income to your household. I do believe that for now the 30 kWh is overkill and as we might not need a full battery every day, we could start with the 10 kWh solution, or even better if they have the plus package (double paneling). The initial $10,000 will earn itself back over 3-4 years and more important it will aid in lowering the electricity bill as the panels can do more than just reload the car battery. More important the larger issue will be the 40 panels, so apartment owners are almost directly out of the race for now, more important, when you have a solution that sets the stage for a doubling down the road with minimum extra you would be looking at reducing the bulk of your electricity bill which is not the worst idea in summer (AC’s swallow electricity like sponges) and that is where we need to look at with Tesla, as we can use Tesla battery power in other ways, the solution becomes an actual larger solution.

They are all about the car and rightfully so, but when did you look around for a battery charge point? That matters, because when there are no options and it must be done at home, you need to have the proper electricity contract, even if that is not the case now, it will be in the future. In Australia, we see Energy Australia giving us: ‘first 10.9589 kWh of peak usage per day‘, then we see ‘Next 10.9589 kWh of peak usage per day‘ and ‘Balance of Peak usage > 21.9178 kWh‘, the prices are all the same for now, but when that changes, which it always does over time? When we see that those in the highest range are charged an additional 5-15 cents per kWh? That will change the cost of living picture real fast and real direct. Now the electrical car is another matter and there is no way that these fears are not with every consumer looking at an electrical car the day after they receive their energy bill, fuel is still more expensive for now; yet when we see it against the Tesla that starts at $112,000 and the highest performance model at $137,000, the math does not work for the largest extent of people. I got here the long way round because it is not the buying of a Maserati that breaks the bank account (for those who can afford it), it is the annual insurance and fuel cost that grab you by the tender spot and makes you regret the choice. Now that we see that and we see that a new 2019 Infiniti Q70 is a mere $48,712 and that is not even close to the cheapest solution, so there is a saving of no less than $63K, if you put that in your super and use the interest to pay for the insurance and fuel you’ll end up paying the cost and growing your fortune, and that by merely banking the additional cost for a Tesla. So no matter how ‘environmentally aware’ you are, the entire saving part becomes a myth and when we see that and we consider that Musk is running out of cash in a myth based created car need that shows that there is a market, yet not with the hardworking population that makes up for a little over 65% of all workers, Elon Musk has a car that is supposed to be for those who prefer high end cars, all whilst we see that the new 2019 Jaguar XF Starts at $50,960, we see that there is a market for people, but is it with Tesla? Consider the question ‘when was the last time you could afford to handover $60K for keeping environmental principles?‘ I met two last year, one was driving a Lamborghini, the other has a black Mercedes-AMG, I reckon they will not join the Tesla community any day soon.

So as I took you on the scenic route towards the drive that Elon Musk requires us all to take and the fact that he seeks $2.3bn, implying he might pressingly need $1.5B by quarter end is a matter for concern, not because of the innovation he created, that is clear and down the track he will be the first; where would Henry Ford be if he never created the Model T? Elon Musk might be the next Henry Ford down the line, yet when we see certain steps taken, we need to see that ‘a far more efficiently operating organization‘ sounds as nice as seeing an organisation grow by 100%, yet when the reality is that they grew from 4 members to 8, we need to seriously consider where we are at and that is where I see Tesla at present. It looks great, yet it is for the bulk of all of us too unaffordable and the bulk of those who can afford it can get the luxury Nissan (Infiniti) or a new Jaguar at half the price and that is where Elon Musk is stationed, in a small niche and in all this.

I do not see the market going his way and that remains to be the sad part, because if he pulls it off and creates a large enough market it will be a historic day for him and for America, they need a win like this in the United States of America where they are in a technology drought. They currently lack of true innovation in too many fields and they show a lack of true new technologies, not amendments or mere iterative steps from the old models that exist. Elon Musk has that one true new technology and I hope that the US can stage it to an actual large enough market, I truly do.

 

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November 14, 2018 · 11:55

The beat goes on

Perhaps you remember the stage. It was around the time that Sony started giving the audience both God of War 4 and Spiderman, breaking all kinds of records in the process. It is gaming at a new level and both groups of players (and many who play both games) have been satisfied well beyond amazement. Now we see that Microsoft is trying to bring the pain to Sony and they are doing it the right way (and only 5 years too late).

With the acquisition of Obsidian (Fallout New Vegas) and InXile (Wasteland 1+2) we see that they are starting to wake up, yet will it be enough? Having exclusive RPG games is the right way to go about it. You see, dedicated RPG fans tend to be long term fans. If you get the game right, there will be no chance that these players will switch consoles or PC Gaming platform. Bethesda proved that point and it gets to be better, there are people (including me) who have the game on all their consoles. There is value in doing that, but it tends to be reserved to the dedicated few and if you are not that person and you merely like it on one system, that is good too.

But it is not all roses and honey in this arranged marriage. Former Obsidian Owner Chris Avellone gave us (via Screenrant) “Chris Avellone didn’t hold back after discovering that Microsoft had just acquired Obsidian Entertainment in a blockbuster deal, beseeching the powerful tech company to gut the leadership that still worked there” that might be the case, it might not. I do not know. Yet what is a given is that the value of such a company is its IP, plain and simple and no matter how amazing Fallout New Vegas was for the Xbox360, that is still Bethesda IP, so is the Elder Scrolls. If they cannot match my ability to create the foundation of new IP within 168 hours, what value, or perhaps what costs is Microsoft looking forward to and will it even have a chance? Let’s take a leap in another direction. In 2017 Guerrilla Games released Horizon Zero Dawn, a game that when looked in depth has an amazing story behind it. It’s a little Matrix perhaps, but the intention towards greatness was there and with reviews ranging from 89%-95% shows that they had the good stuff, the right stuff and the parts that Ubisoft keeps missing out on. Now they are in not merely in the right pace, they are literally sitting on the next goldmine. How it will turn out? No way to tell. I am not in their in-crowd, but the potential is there. Can Obsidian bring that level of pain to their competitors in this field, because that will be the need? I know a lot less about InXile, yet so far they have been largely dependent on the Bards Tale and Wasteland franchise and that could be enough if they take it to new levels, because that is what the players look for. For me the Bards Tale looked awesome as I had not touched the Bards Tale Franchise since the CBM-64. I never really got into that game. Not every game is everyone’s cup of tea and that is not a bad thing; only Ubisoft has been delusional enough to think that they can make a game for everyone and they keep on making games that pleases no one (OK that was a bit of an exaggeration).

You might think that gaming is not interesting, yet it is the most interesting part in all this, merely because gaming has remained on the edges of technology for the longest of times. Its push is also a push for hardware. It is my personal belief that the new I9 processor (an Intel fabrication) would not exist without gamers. Mark Seconi (Intel) gave us in Forbes last month “Gaming has traditionally been the more lightly-threaded of applications your PC will face, but over the last couple of years we’ve seen games and gaming engines become more threaded. Nonetheless, they do still remain lightly-threaded, but we also recognize that a lot of the gaming community also do content creation to some extent. That’s both casual creation or something more demanding and a lot of those applications are beginning to use more and more threads“, you merely have to consider how this skill could propel blockchain software solutions over time and we see that partially at Digital trends with two quotes. The first one “Rather than compete directly with either the Threadripper 1900X or the Ryzen 7 1800X, the Core i9-9900K promises the best of both worlds. It has a base clock speed of 3.6GHz, matching the Ryzen 7, but boosts up to an audacious 5GHz Turbo frequency. Not even the 2nd-gen Threadripper has cracked that milestone. Its core count might be far behind, but the Core i9-9900K can hit higher per-core clock speeds at default settings“, as well as “the Core i9 is the clear winner in every benchmark and test we could put it through. Against the previous generation Core i7-8700K, the Core i9 matched its single-core performance, but flexed its eight-core muscles by upping its multi-core score by around 25 percent. That’s the kind of improvement two extra cores provides“, something that is 25% more powerful than anything else. This implies that your data mining scripts can clear up more data, aggregate as well as set the stage for more predictive analytics in a single day, well over 25% more because the solid state drive fixed a lot before, the processor had become the bottleneck and that is now changing. Consider another paraphrased quote: “It takes millennia to break the cryptographic algorithm. This cannot be done faster because of the computational limits we have (now that takes 25% faster). Quantum computers in the future might be the answer, yet we merely upgrade the algorithm. Satoshi Nakamoto, the bitcoin creator added cryptography in his system to help people authorise bitcoin transactions from their wallets“, yet it is not the hacking, it is the creation of all this that also takes time and if it is about speed, creating the cryptographic 25% faster will be everything in banking and FinTech solutions for decades to come, that is where the i9 will find itself get embraced by banks at the speed of light, and that is even before we see new solutions that will allow people to now create live video-edited streams on the air. A system that optionally censors ‘live news action’ within 7 seconds, from the battlefield straight to the TV recipient, a stage that allows almost instant filtering. Places like CBS, Fox News, SBS, BBC and many others will fly to the shops getting that solution taking away time constraints. When you consider ‘There are nine factors associated with newsworthiness: generally recognized significance, possible future impact, conflict, human interest, proximity, the number of people affected, timeliness, exceptional quality, and shock value‘, now consider that this so called ‘gaming chip’ optionally removes the time constraint for the creation of 3-4 of them, do you still think it is merely about gaming?

Is this about gaming?

It still is to some degree; it is about pushing corporate creativity, this is not merely set in a more expensive computer, it is seen in the creation of material and the creation of a video game is one of the most visible digital creation fields there is.

We can all admire the creativity of an advertisement, the clever use of innuendo and graphics. Yet this is all staged in a time frame. What happens when we remove that element? What happens when we see (as this is happening at this very moment) that data mining is done on the fly, the need of ‘on to go’ editing for dashboards and presentations are set to zero time? Don’t laugh because this is happening at this very moment all over the world. The systems are fast enough to no longer be the bottleneck. Now we see the need of a new kind of data miner. One that can see through data and who can creatively look at other ways to present the lack of 2.75% growth, or perhaps a long term impact that has to be explained to the shareholders in an acceptable way. It is a new age in Data Visualization, where the story is everything and now we see the intersection with gaming development. Adjusting the storyline of the dashboard is becoming the mainstream player here. Don’t take my word for that, Forbes gave us two weeks ago: “Any great story means visualization and detail. It takes the small additions of those details to build a picture in someone’s mind to truly make the story complete. The same goes for analytics and data“, it is a new style of adherence. a person needs to be able to focus the listener and create attachment of the shareholders to a cause, a trust and a commitment to that corporation, in this creativity is become everything and that is directly seen in the ability to create any Role Playing Game.

It is digital theater in a new way, the hardware is now ready to do it on the fly, but with the wrong presenter that view collapses as soon as it is presented and the gap between projection of data, capture of results and presentation to the shareholders is now diminishing and we see that solutions like Tableau are ready for that, if they can only find the right people to get the data from Point A to PowerPoint presentation. The corporations still have their marketeers to tell the story, yet the shareholders will no longer accept the delay of the presentation pushing a new need to a group of people that we have not seen before.

Uniting Business Intelligence and Gaming

In the first stage we see (a random choice) presentation (at https://www.youtube.com/watch?v=LntX_5qA_Aw), this two minute presentation gives what BI was, frozen moments in time presented on the screen to a group of people. Now we go to the extreme other end, it comes from a game called Counterstrike. It is 90 seconds and shows how the display dashboard is adjusted (at https://www.youtube.com/watch?v=JQO8dR8NHM4). In the second stage we need to unite the views, the issue is that no one is ready at present. A company named Profitsword is making waves in the right direction, yet they have not arrived at this destination yet (at https://www.youtube.com/watch?v=UhE6RMZYF3M), it is merely on theme and it is the themes that drive the solutions. Should you doubt me, ask yourself, have you ever gone to a car site and configured a car to your liking even though you will never be able to afford the wheel caps? Jaguar, Dodge, Maserati and there are plenty more. You see, it is actually quite simple. A thematic approach gives us identity and the identity of a company translates into value, interaction gives engagement and these two elements are becoming more crucial in keeping the shareholders (and the general audience) interest. The question is problem is how to avoid a mere ‘sprinkle’ of interest and keep it business oriented. The gaming industry had that solved close to a decade ago, people ignored it too long and those in the trenches of that world are now reaping the benefits. The game has 11 million players, in May 450,000 people were actively playing the game. In a business of 100 billion, those numbers matter and the fact that this game has been around for 18 years is even more amazing. We are halfway in the month and this morning 178,000 gamers were playing that game. These numbers matter, because if engagement and interaction is everything in this field, how long until BI graphics require a lot more than we currently see?

What happens when Hawaiian Tropics changes the game and this poster is not merely advertisement, but the Shark, and the swimmer in the water becomes elements of profit, loss, ability and availability shown in its own way? What happens, when the presentation is not merely graphics, but the water itself shown brand visibility against others? That is not a fab, that is the direction that we are going in and people will stop, they will take additional looks at that presentation and when they can choose elements like placement, and product type to see how the brand shows up against others, how much better in protection, where to get it, where the best deal is and we are there now 5G will allows that to be done on the fly, to see the ads, interact and the people will engage, and as has been shown for a few years now, engagement is quality marketing. It is not views on Facebook, it is not a display advertisement, it is the engagement with the presented product that draws people in, every single time and the quality programmers for that solution have been doing it in gaming for over a decade. As I started, the beat goes on, but the tune is shifting as are the beats per minute in that showstopper. The push for engagement will be everything over the next 5 years and that will be seen even more clearly in the boardroom and shareholder presentations. Having the ability to mainstream such levels of interaction is going to be the next gold rush and at present the amount of players on that level is disturbingly low. The moment they catch up too late we will see all these golden fires that promise a lot, yet in the end you merely see a file with scorched data results.

Whatever we will see, it is not an easy path and there will not be too many good players, ready to go that distance, yet those who do will corner that market for close to the next generation. That path is actually a different one and the golden programmers will be needed, but not high on this corporate ladder. that place will be limited to the with the creative vision to see what needs to be programmed and those programmers who see the image and comprehend how to program that will end up being the people with a job and career until their retirement.

It has been a long time from the models we had to the model where creativity was the slowest element in the digital framework, however we are there now and knowing how to deal with it will be the crux. Or to frame it in another view, the time for the cold accountant is over in the Annual stockholders meeting, now it is not merely that knowledge, it is the one who finds the novelist that gives the correct engaging story that weaves it all together in a way all shareholders can relate to, that will be the golden placement to have.

This now gets us back to Microsoft. No matter what software house they buy, yes they will always have a Minecraft audience need, yet the bulk of all the gamers require a new a most original IP to get them through the next season of gaming. Guerrilla Wars figured it out and gave the people Horizon Zero Dawn. A new IP, now Microsoft needs to do the same with two houses that have relied on the same IP for an awful long time; are they ready for what comes next? Microsoft Studios has the right stage when the connected with Bioware and unleashed Mass Effect on the people in 2007, it seems to be a lesson they have forgotten too easily, so I hope that they catch on quick as this is a stage where you are merely allowed to get it wrong only once. Mass Effect Andromeda taught them this lesson the hard way, a C$100 million dollars development failure that merely gave them a 71% rating (in gaming rating translates directly to revenue), Guerrilla Wars needed a mere 50% to get a much better result, creativity and the story were everything, pretty much quite literally and we will see that same push in Business Intelligence. Data Visualisation is getting us there, whether we want it or not. When we realise to all the ways we can engage with an audience, we will learn that a few buttons will not do the trick, it will be about the backdrop, the interaction and the choice of what we see. It is a path gaming has been on since 1993. You cannot ignore 25 years of technology evolution that would actually be really stupid.

 

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February 6, 2015 · 00:14

A basket full of trash

Have you ever had this? I am not talking about the Christmas or the hospital basket. No, I am talking about those ‘greeting’ baskets you get. One of these: ‘welcome new member’ baskets. You accept them with a smile, whilst you know you are getting a bag full of goodies that have value that is close to zero. Now we get these baskets from book clubs and other longer term commitment places, none of this is a big mystery to many people, because at some point, we all get confronted with this basket. Now, let’s change the game a little, now we consider the same basket, but in this case we don’t look at some two bit online retail vendor, now we look at Price Waterhouse Coopers.

That part is seen in the Guardian as per today. Let me refresh you on some of the facts, for that I will take you back to my blog from October 25th 2014 called ‘Price Waterfall Blooper‘. In there I wrote the following “Consider that PwC had (a reported by the Guardian in an earlier blog) last year; PwC was paid £10.4m by Tesco for its auditing services and a further £3.6m for other consultancy work (a newer version at http://www.theguardian.com/commentisfree/2014/oct/23/guardian-view-tesco-auditing-debacle-pwc-systemic-shambles)“. Now when we add today’s information, information I quite honestly never considered: “The Groceries Code Adjudicator, Christine Tacon, announced the move, saying she had formed a “reasonable suspicion” that the retailer has breached the Groceries Supply Code of Practice“. Now, let’s take a quick look at this so called ‘code of practice’. First of all, the information is found here: https://www.gov.uk/government/publications/groceries-supply-code-of-practice. The fact that this is on a dot Gov dot UK site should indicate that this is the serious stuff. So this code of conduct states at 4.1 PART 4—PRICES AND PAYMENTS, the following: 5. No delay in Payments and at 9. We see Limited circumstances for Payments as a condition of being a Supplier. This is just two of a long list of a code of conduct. The reason to mention these two is the question that follows. ‘How come the auditor was not aware of these facts?’. These are not just simple facts, they are codes of conduct, and can someone please explain to me how this is not raised by the firm charging close to 14 million pounds for one year of work? There are two other parties who are about to see the limelight. Party one is the Press. You see, I was following part of this since last year October, yet, I do not remember seeing the press being awake on these facts. I have a decent excuse living on the other side of the planet and the fact that these elements are not part of my Master of Intellectual Property education, yet the press, Pricewaterhouse Coopers as well as whatever legal aid is out there in UK farmland, it seems to me that too many people were not paying attention at all. There is actually a third side to this. I missed it initially, but when you look at the Guardian on October 23rd (at http://www.theguardian.com/business/2014/oct/23/tesco-black-day-profits-down-92), we see the following: “Tesco claimed that the rogue accounting practices – which relate to how the supermarket banks payments from suppliers – dated back at least two years“. Now consider again the government side that states ‘Guidance Groceries Supply Code of Practice, Published 4 August 2009’, so the statement and the fact that there was a code of conduct out for half a decade, did no one consider that there were additional issues that might rise?

Who on earth is running PwC in London? More important, what on earth is mentoring these wannabe’s? I have good right to speak in this manner. This took me 5 minutes to figure out when I got wind of this small fact, the fact that PwC, the Press and others were not all over this from day one is a little too weird for words. Consider the people that quickly left Tesco when the water got slightly too uncomfortable. Should they have known? I’ll let you answer this question for yourself, but now also consider that the auditors did not make mention in reports on some of these parts, they DEFINITELY should have known about the codes of conduct for the simple reason that part of this is linked to the pesky rules regarding payments and so on. What else did these people miss? More important, consider the date I mentioned (October 23rd), now consider the Deloitte report, was this part in that report? If not, consider that they had to check on these ‘miscalculations’, as we see the mention ‘rogue accounting practices‘ and ‘payments from suppliers‘, did no one consider looking under rock number two? Granted that Deloitte did not get much time, but as we see that suppliers were part of the mix, did no one mention the question ‘What about the Groceries Supply Code of Practice? Do we need to consider any issues there?‘ Did that question seriously not come up?

Now consider my blog from October 13th called ‘A matter of Jurisprudence‘, there I wrote the following “company secretary Jonathan Lloyd, who advises the board on legal and governance issues, had resigned and was serving out his notice until March 2015”, the second one “Ken Hanna, chairman of Tesco’s audit committee, is also set to step aside as a non-executive director as the company’s chairman reshuffles his management team”, which was shown from several sources. Now consider the fact that we see Jonathan on legal issues and Ken as part of the audit committee, they should have known about the ‘Groceries Supply Code of Practice’, which now gives an entirely different light into their departures. So was PwC completely in the dark about this? If the answer is yes, then my next question should be ‘why are they allowed to be auditors?’ Is that such a weird question to ask? It is a code of practice, not a fraternity paper on how to score, so I reckon, especially as it has financial sides, the auditors should have taken a look, moreover, Deloitte should (they might) have reported on this. The fact that the press is only now revealing these events calls for additional questions, but their fumbling is not part of this article, the fumbling of accountancy firms a lot more, for the mere reason that the code states at 5. “A Retailer must pay a Supplier for Groceries delivered to that Retailer’s specification in accordance with the relevant Supply Agreement, and, in any case, within a reasonable time after the date of the Supplier’s invoice“, which should have been part of the financial checks, can we all agree on that part?

And as we take a better look at this basket (have you figured it out yet), we see that the players were in a lot deeper than initially suggested. This cesto, has harboured information, misinformation and above all else, a lack of illumination of the facts as is. First there is Tesco themselves, the latest information shines a harsh light on several members who have vacated their office, in addition there is the case I made on October 13th in my blog ‘A matter of Jurisprudence‘, where I mentioned one person (Rebecca Shelley) who would have been at the centre. The mention on the Birchwood Knight site was “As part of her corporate affairs role, Rebecca will be responsible for government and media relations, investor relations, internal communications and corporate social responsibility“. Rebecca’s job hits ‘government relations’ and ‘social responsibility’. How come that this ‘Groceries Supply Code of Practice’ remained so below the radar?

So when we see months of reporting and we see the lack of mention of this so called ‘code of practice’ we also see the mention in today’s article “Business secretary Vince Cable said: “This is an historic day for the groceries code adjudicator and shows we have created a regulator that has real teeth“. Who is this Vince Cable catering for? You see, if this statement had been given before December 1st 2014, then there might have been a case, at present the act of mentioning it months after going live is just another presentation of a sad story on how some people could be seen by many others as some parties remaining silent hoping to make a bundle down the track.

So I reckon that Tesco will have to sweat the small stuff for some time to come, however, the more we get to see at present, the less clean the image of PwC seems to be. In the case of PwC it will become a case that is worrying on several levels. Not only are the looking for hardship over what was done, as per now it seems that PwC will be scrutinised for the things they did not do, not properly oversee or missed altogether, as per today it sucks to be the senior account holder of the Tesco account, because the fallout will continue for a decently long time to come.

So as we see the basket (also known as a cesto) filled with the trash of information, wrongful acts and none acts, can we all agree that we got a whole lot of nothing, an act that will have severe repercussions and not just legal ones! Does anyone remember this Warren Buffett fellow and how he lost 2 billion in value? If we combine what we have seen so far and add the part that I discussed in October regarding the Chadbourne papers, I can repeat that quote: “that directors of companies must make certain disclosure statements in the directors’ reports. This applies not only to information which the officer actually knew of but also information he would have known about if he had conducted a reasonable enquiry. However, the provision goes further and requires the director to confirm that, so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware”. This now brings an entirely different light to the Groceries Supply Code of Practice, moreover, it could be suggested that Warren Buffett now has a clear case in legally reclaiming his losses, consider that the US has the Sarbanes–Oxley Act, after Enron, which took care of the power players real fast. The UK has the Corporate Governance Code. I reckon that it is not too far-fetched that Mr Warren Buffett could be offered a deal for his lost two billion. If so Warren, remember this poor blogger and I feel so much better getting to work in a new Jaguar XK, in British racing green of course.

 

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