Balanced Scorecard approach to Technology Assignment

Balanced Scorecard approach to Technology - Assignment Example There might also be disrupting technologies that make the entire range of products or business models haywire.   Along with this, due to lack of proper communication, the problems are not looked into or solved in the right manner by the right people. A company would formulate its strategy in such a way that it enables the business achieve its desired goals and it is the path that would lead the company to its success. This is necessary so that the company can translate its innovative ideas to stories of success in reality.Development of the Balanced Scorecard SystemFirst of all it is important to know and understand the stakeholders that of the company and their individual objectives. Then the strategic components of the business have to be identified and their present position has to be analyzed. These components are the vision, the mission, departmental goals, the core values of the organization and the various dimensions of performance and the forecasting of the probable results .Now for using a Balanced Scorecard approach for Reliant Technologies the health of the company can be measured from both financial and Non Financial perspectives (Kaplan and Norton, 1992). This is the advantage of Balance Scorecards measure that it looks into the business beyond the numerical figures of financial statements and exhibits a better insight into the bigger picture. The main areas of the Balanced Scorecard would be as follows (Figure 1).Accurate Financial data and the proper interpretation and forecasting.... Then the strategic components of the business have to be identified and their present position has to be analyzed. These components are the vision, the mission, departmental goals, the core values of the organization and the various dimensions of performance and the forecasting of the probable results. Now for using a Balanced Scorecard approach for Reliant Technologies the health of the company can be measured from both financial and Non Financial perspectives (Kaplan and Norton, 1992). This is the advantage of Balance Scorecards measure that it looks into the business beyond the numerical figures of financial statements and exhibits a better insight into the bigger picture. The main areas of the Balanced Scorecard would be as follows (Figure 1). Figure 2 Balanced Scorecard Figure 1: Balanced Scorecard (Source: Kaplan & Norton, 1992) Financial Aspect Accurate Financial data and the proper interpretation and forecasting are required for the crucial analysis of the financial position of the organization. This data should be available to each and every segment of the operations of Reliant so that all the persons concerned would know how and which factors are changing the bottom-line of the balance sheet. Rigorous metrics on the profitability like EBIT, EBITDA and Operating Income have to be done to understand the real position of the business. Thus centralization of the system is necessary for the managers. Assessment of the Return on Investment The assessment of financial position is not enough. The situational analyses of risky situations that Reliant might face and the costs and benefits of undertaking different projects should be done instantly. Prior calculations of return on investments have to be undertaken before going for any kind of new project that