Should Clinkle a Mobile Payment Startup Company Seek ISO 9000 Certification?
Of course having solid control processes is essential for any successful organization. Some organizations like to seek formal recognition for their control functions through independent certifications such as ISO 9000. In order to receive ISO certification, you need to extensively follow and document a long list of published standards and then have an outside evaluator certify that you are meeting these standards.
ISO certification has both proponents and critics. Proponents argue that meeting ISO standards through certification will improve organizational control functions and also help signal to the outside world that you are running a solid operation with high standards. However, critics point to the huge amount of time and money spent on documentation that may be excessive. Critics also say that ISO focuses on documentation of processes rather than the actual quality/efficiency of the process.
For this assignment, first read up on ISO certification and examine the arguments both for and against it. Then read up on a new start-up company called Clinkle and consider whether or not ISO 9000 would be appropriate for this new company to seek. Clinkle is new online payment company that has received a lot of media attention recently but has also had its ups and downs. It has raised a lot of money from investors but is still at an early stage with no revenue yet.
Here are some articles on ISO certification to get you started:
Seddon, J. (1997). Ten arguments against ISO 9000, Managing Service Quality 7(4), pp. 162-168. [ProQuest]
Wahid, R., & Corner, J. (2009). Critical success factors and problems in ISO 9000 maintenance.
The International Journal of Quality & Reliability Management 26 (9), pp. 881-893.
Here are some articles on Clinkle to get you started:
Smart money follows mobile payment app Clinkle (July 4, 2013). Irish Times, Dublin [ProQuest]
Clinkle raises $25 million in seed financing as it prepares to change the way people transact. (June 27, 2013). Business Wire, New York [ProQuest]
Case Assignment
After doing research and carefully considering whether or not ISO certification is the right option for Clinkle, write a 4- to 5-page paper answering the following questions:
1. What aspects of the control function of management do you think should be the most important to Clinkle?
2. What would be the main benefits to Clinkle of obtaining ISO certification?
3. What would be the main disadvantages to Clinkle of obtaining ISO certification?
4. Overall, should Clinkle invest time and money in ISO certification, or are the resources better spent on other ways to maintain control systems?
Assignment Expectations
• Answer the assignment questions directly.
• Stay focused on the precise assignment questions; don't go off on tangents or devote a lot of space to general background materials.
• List supporting references and cite sources in proper format.
• Use reliable and credible sources as your references. Articles published in established newspapers or business journals/magazines are preferred. If you find articles on the Internet, make sure they are from a credible source.
• Use appropriate writing style in essay form (organization, grammar, and spelling).
• Review Trident's “Writing Style Guide” for more detail on referencing and writing expectations. This guide is found under “My Resources” in the TLC portal.
Should Clinkle a Mobile Payment Startup Company Seek ISO 9000 Certification?
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Should Clinkle a Mobile Payment Startup Company Seek ISO 9000 Certification?
Introduction
Will it bear more merits than demerits? These are integral questions we should answer when weighting between the pros and cons resulting from ISO 9000 certification. What is ISO certification? The International Organization for Standards (ISO) could be elucidated as a global organization that certifies and accredits companies, organizations, firms, educational institutions, and businesses (Wahid, Corner, 2009). This certification is compared to the international standards on areas such as services rendered, safety provided, social responsibility risk prevention, and management. ISO certifies organizations based on categories. For instance, ISO could certify other organizations on categories such as quality standards (ISO 9000), and environment management (ISO 14000). It is notable however, that there are additional categories used to certify organizations. Simply put, ISO certification is not limited to ISO 9000 and ISO 14000. The following argument is put forward: Even though ISO 9000 could be an expensive endeavor for Clinkle, the benefits associated with the certification justify the need for Clinkle to obtain the certification.
ISO 9000
The ISO 9000 family of quality management systems helps organizations meet the needs of regulatory requirements, customers, and other stakeholders. As a result, it includes the eight principles of management, which are not the focus of discussion in this paper. Regardless, the eight principles are the backbone for ISO 9000 and include Leadership, customer focus, process approach, involvement of people, continual improvement, mutual relationships, factual decision making, and system approach. Evidently, the aforementioned principles appear to be beneficial to businesses. However, both scholars and practitioners do not agree to whether ISO 9000 always benefits businesses. As evidence, different academicians provide arguments against and in support of the need to implement ISO 9000. It is critical that much of the debate focuses on the costs involved in pursuing ISO 9000 and the benefits reaped from having the certification. It follows that Clinkle could choose to pursue ISO 9000 depending on the circumstances surrounding the organization.
Proponents for ISO 9000 argue that pursuing the certification is a crucial step in achieving quality within an organization. Moreover, the certification decreases the gap between total quality management and current quality management; offers a shift in focus from final product processes to processes used in producing products; and improves internal operation and organization, and improves communication. According to Seddon (1997), implementing ISO 9000 also lowers variation in quality. In simple terms, if all organizations obtain the ISO 9000 certificate, then the quality of products and services across organizations in the same industry may not even vary. Apparently, the benefits of ISO 9000 are massive. From increased marketability, reduced operational expenses, better management control, and increased customer satisfaction. The list is a clear indication of the benefits Clinkle could achieve if the management makes it an organizational objective to pursue the ISO 9000 certificate.
Despite the merits of ISO 9000, there are several hurdles company owners and managers must understand before seeking the ISO 9000 certification. First on the list is the lack of adequate understanding of the ISO 9000 certification process or of the quality standards required to obtain the certificate (Seddon, 1997). This owes to the reality that an organization can choose to spend its time and money to obtain the certification, but stil...