Assignment 2: Required Assignment 1—Business Case and Proposal for Project Selection

Financial perspective is one of the primary factors in the process of decision making as it enables in understanding whether investment in the technology will be profitable or not. It enables in understanding about the cash generated from the investment that is essential for effective decision making. New technology has a significant impact on the various costs that is it is expected to reduce various costs of operations (Kaplan & Norton, 2007). It will enable in reducing the cost of data entry and other operating costs that will boost the profitability of the company.

Inventory cost of the company will be reduced, and there are savings in the legacy cost incurred by the enterprise. Thus, implementation of these technologies will reduce the overall cost of operations which is essential for improving the overall performance of the enterprise.

Following table provides detailed information about the payback period and return on investment.

From the cost-benefit analysis, it is clear that it will take about 4.8 years to recover the entire amount of investment and the return on investment is expected to be higher. This project provides higher performance and thus, this project must be selected.

Customer perspective

Investment in technology is mainly made to retain the client and to increase the overall increase the customer satisfaction. Investment in technology will improve the overall productivity and efficiency of the company. It will enable the company to provide better service and product to the customer. New technology will add more value to the client. In other words, it will add more value to the customer value. It will enable in reducing the overall waiting time and will improve the customer satisfaction. Once the percentage of customer satisfaction improves there will be an improvement in the customer retention rate that in turn will add more competitive advantage to the company.

Learning and growth perspective

Learning and growth perspective are major drivers for many businesses. This attitude is responsible for the overall increase in the organization. It will enable to improve the overall efficiency of the employee and improve the productivity (Kaplan & Norton, 2007). It will allow the employee to be responsible and permit the company in achieving their goals. When we consider the new technology implementation it is clear that company must make more effort in providing appropriate training to the employees.

Employees are new to this technology; therefore formal training session must be arranged by the corporation. There must be continuous training and monitoring of the performance of the employee (Kaplan & Norton, 2007). Providing on the job training for making use of the new technology will provide more knowledge to the employees as how to manage them in future. In this case, learning is the primary requirement that can be achieved only through proper training. Similarly, all queries of the employees must be addressed in an appropriate manner so that learning and implementation of the technology will be effective (Balancedscorecard.org, n.d.).

Investment in new technology is made for improving the overall productivity of the company. It will boost the growth in the business. It will improve the efficiency of the productivity and increase the overall production of the product. It will improve the overall quality of the product and will increase the overall customer value. It will increase the overall market share of the company and number of customer.

Internal operations perspective/Business process perspective

Investment in new technology will enable in enhancing the overall internal operations perspective. Internal business operations are one the primary aspect which has a direct impact on the business of the company (Balancedscorecard.org, n.d.). This new technology is expected to improve the overall business operations of the enterprise. If the internal business operations of the company are effective, then the implementation of new technology will yield a better result to the company.

Cooperation from the business process is essential, and there must be flexibility in the business operations to accommodate the new technology. New technology will enable to improve the overall business process and make them more refined which is essential for successful implementation and usage of technology. Such accommodation will only result in improving the overall efficiency and effectiveness of productivity.

It will improve the overall quality of productivity and at the same time will reduce the cost of operations (Kaplan & Norton, 2007). It is essential for every company to reduce the overall cost of operations to improve the profitability and in increasing the process efficiency. By making use of this new technology company will be in a position to improve the overall effectiveness and at the same time will reduce the overall cost of operations and time consumed for completing a process.

There is an expected reduction in the redundancy and thus improvement in the overall efficiency of the company. This increase in the effectiveness provides a competitive edge to the enterprise in the market and in stabilizing their position. It provides a unique identity about the operating effectiveness of the enterprise in the market. It will improve the overall shareholder’s value in the market, and it will gain more confidence from the investors (Kaplan & Norton, 2007).

This new technology will improve the overall process and will enable in completing the order successfully. Overall order fulfillment process is made effective and efficient. It is expected to reduce the overall carrying cost of inventory that is improving the overall profitability of the company. There is an overall improvement in the supply chain management of the company that is entire supply chain management operations are made smooth. It increases the overall effectiveness and will increase the process speed.

Implementation of project

Implementation of this project will enable in obtaining stronger competitive advantage and thus will improve the overall operations and will result in improving the services and reduction in the overall lead time. It will enable in improving overall efficiency and effectiveness both internally and externally (Kaplan & Norton, 2007). Overall improvement in the process time which will result in catering the customer on time without any delay and it will reduce the cost of inventory. There is an overall improvement in the customer satisfaction and retention rate of the company. Improvement in the supply chain management of the company and it results in higher inventory turnover ratio for the business that is essential for earning a competitive edge in the market.

Resources

There are both tangible, and intangible resources present for any business. Both these tangible and intangible aspects have an impact on the entire business. Intangible benefits that can be obtained by implementation of this project is the improvement in customer satisfaction, customer retention, effective productivity and employees learning and motivation (Balancedscorecard.org, n.d.). In the case of tangible benefits, they are an improvement in the revenue, reduction in the operating costs, improvement in the overall profitability, improvement in the process and increase in the overall productivity (Balancedscorecard.org, n.d.). Thus, from the above research, it is clear that there is both tangible and intangible benefit obtained from the implementation of new technology.

Risk management

It is essential for every company to have effective risk management strategy to manage the uncertainty faced by the enterprise. In this case, it is essential for the company to provide appropriate training to the employees, failing that will result in making the entire investment useless. If there is no proper training, the employee will not be in a position to handle them effectively and company will lose the opportunity of earning the higher competitive edge. There may be some situation where the company may be forced to terminate some employees, and this must not create more internal trouble to the management. An employee of the company must be handled with due care to avoid adversities.

Conclusion

From the overall analysis and Balance Score Card analysis of the new technology, it is clear that implementation of new technology will be beneficial to the entire organization. Thus, the company must accept this project.

References:

Perspectives. (n.d.). Retrieved December 16, 2015, from http://balancedscorecard.org/Resources/About-the-Balanced-Scorecard

Failure to Benchmark: An Out-of-Balance Scorecard at a ... (n.d.). Retrieved from http://digitalcommons.wcupa.edu/cgi/viewcontent.cgi?article=1002&context=acc

How to develop technology roadmaps? The case of a Hospital... (n.d.). Retrieved from http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-651320150050111

Kaplan, R., & Norton, D. (2005, July 1). The Balanced Scorecard: Measures That Drive Performance. Retrieved December 16, 2015, from https://hbr.org/2005/07/the-balanced-scorecard-measures-that-drive-performance

Kaplan, R., & Norton, D. (2007, July 1). Using the Balanced Scorecard as a Strategic Management System. Retrieved December 16, 2015, from https://hbr.org/2007/07/using-the-balanced-scorecard-as-a-strategic-management-system/

Rouse, M. (2010, April 1). What is balanced scorecard (balanced scorecard methodology)? - Definition from WhatIs.com. Retrieved December 16, 2015, from http://searchcio.techtarget.com/definition/balanced-scorecard-methodology