Running Head Business Case And Proposal For Project Selectio

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BUSINESS CASE AND PROPOSAL FOR PROJECT SELECTION 3 Business Case and Proposal for Project Selection Sherry Crowe B6111 Managerial Applications of Technology Argosy University December 16, 2015 Balanced scorecard was the method that Drs. Robert Kaplan and David Norton developed the structure of performance measurement that implements an impeccable measure (Perspectives, n.d.). “The balanced scorecard is an analysis technique designed to translate an organization's mission statement and overall business strategy into specific, quantifiable goals and to monitor the organization's performance regarding achieving these goals (Rouse, 2010).” It makes it possible to analyze and measure the performance of an organization from several different perspectives.

However, with all the possibilities, it allows a company to understand their overall performance and progress towards their objective. There are four perspectives used by organizations: Financial perspective, customer perspective, learning and growth perspective, and internal perspective (Kaplan & Norton, 2007). These aspects are pivotal for businesses and cover all capacities of said businesses. By utilizing a balanced scorecard, companies can understand performance gaps and how to bridge them, aligning strategic objectives with operational activities to enhance overall efficiency (Kaplan & Norton, 2005).

This paper will explain each of the four perspectives in detail, ultimately demonstrating that Centervale Apparel is prepared to adopt new technology to gain a competitive edge. The company's planned investment of approximately $9.7 million aims to improve operations, reduce costs, and increase customer satisfaction. Analyzing these perspectives underscores the strategic rationale for adopting technological improvements.

Paper For Above instruction

Introduction

The balanced scorecard approach remains a vital strategic management framework that integrates financial and non-financial metrics to provide a comprehensive view of organizational performance (Kaplan & Norton, 1992). The application of this methodology in evaluating technology investments facilitates alignment with strategic objectives and ensures resource optimization (Niven, 2006). In this context, Centervale Apparel's proposed technological upgrade exemplifies this holistic assessment, addressing multiple organizational facets for future growth and competitiveness.

Financial Perspective

Financial metrics are fundamental to decision-making processes, especially regarding investments in new technology. The primary aim is to evaluate whether such an investment will generate sufficient returns and cost savings. The implementation of advanced technology at Centervale Apparel is projected to reduce operational costs significantly, including data entry, inventory, and legacy system expenditures (Kaplan & Norton, 2004). These savings directly enhance profitability and cash flow, enabling the company to recover its initial investment within approximately 4.8 years, based on a detailed cost-benefit analysis.

The return on investment (ROI) metric further validates the investment's attractiveness, emphasizing the importance of strategic financial planning in technology adoption (Luftman & Kempaiah, 2007). Such analysis ensures that the company’s capital is allocated efficiently to projects with measurable financial gains, reinforcing the importance of integrating financial considerations within the balanced scorecard framework.

Customer Perspective

Customer satisfaction and retention are critical success factors in a competitive apparel industry. Technological improvements aim to directly enhance customer experience by enabling faster service delivery, personalized products, and improved communication channels (Heskett et al., 1994). As a result, customer satisfaction scores are expected to rise, leading to increased loyalty and market share.

Furthermore, by reducing wait times and improving product quality through automation and data accuracy, Centervale Apparel can differentiate itself from competitors. This heightened customer value aligns with strategic objectives, emphasizing that customer-centric metrics should be integrated into performance evaluations (Kaplan & Norton, 1997). Such focus ensures that operational changes translate into tangible market advantages.

Learning and Growth Perspective

This perspective focuses on developing organizational capabilities and supporting continuous improvement. Implementing new technology necessitates comprehensive employee training programs to foster skill development and adaptability (Garvin, 1993). Ongoing training and monitoring of performance are pivotal for maximizing technological benefits and maintaining a motivated workforce.

Investment in learning initiatives enhances organizational capacity, fosters innovation, and sustains competitive advantage (Senge, 1990). Employees' ability to effectively use new technology directly impacts operational efficiency, quality, and ultimately, strategic success. Therefore, aligning training and development with technological upgrades propels the organization toward its growth objectives.

Internal Operations Perspective

The internal process perspective evaluates how well internal workflows support strategic goals. Technological integration is expected to optimize production, streamline supply chain management, and reduce redundancies (Fine, 1998). These improvements lead to faster order fulfillment, lower inventory costs, and enhanced overall efficiency.

Effective internal processes are essential for maintaining competitive advantages, especially in the apparel sector where delivery speed and quality control are vital (Gunasekaran et al., 2004). Flexibility in operational procedures to accommodate new technology ensures successful implementation and sustainability, ultimately increasing shareholder value (Kaplan & Norton, 2004).

Implementation and Resource Management

The success of the technological upgrade relies on proper resource allocation—including tangible assets like capital and intangible assets such as employee competence. Both are pivotal in realizing projected benefits. Effective risk management strategies, including comprehensive training and change management, are essential for mitigating potential disruptions during implementation (Kotter, 1996).

Forecasted risks such as employee resistance and system integration challenges necessitate proactive measures, such as staged rollouts and continuous feedback mechanisms. This strategic approach minimizes uncertainties, allowing the organization to realize the full potential of technological investments without jeopardizing operational stability.

Conclusion

In conclusion, applying a balanced scorecard to evaluate Centervale Apparel’s technology investment demonstrates its strategic fit across financial, customer, learning and growth, and internal processes perspectives. The integration of these perspectives highlights the multifaceted benefits, including operational efficiency, customer satisfaction, and workforce development. The anticipated returns, both tangible and intangible, affirm that the proposed investment aligns with the company's long-term strategic objectives, justifying its implementation.

References

  • Garvin, D. A. (1993). Building a learning organization. Harvard Business Review, 71(4), 78-91.
  • Gunasekaran, A., Patel, C., & McGaughey, R. E. (2004). A framework for supply chain performance measurement. International Journal of Production Economics, 87(3), 333-347.
  • Heskett, J. L., Sasser, W. E., & Schlesinger, L. A. (1994). The service-profit chain. Harvard Business Review, 72(2), 164-174.
  • Kotter, J. P. (1996). Leading change. Harvard Business School Press.
  • Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard— Measures that drive performance. Harvard Business Review, 70(1), 71-79.
  • Kaplan, R. S., & Norton, D. P. (1997). Using the balanced scorecard as a strategic management system. Harvard Business Review, 75(1), 75-85.
  • Kaplan, R. S., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into tangible outcomes. Harvard Business School Publishing.
  • Luftman, J., & Kempaayah, H. (2007). Key issues for IT executives 2007. MIS Quarterly Executive, 6(2), 83-99.
  • Niven, P. R. (2006). Balanced scorecard diagnostics: Maintaining strategic alignment. John Wiley & Sons.
  • Senge, P. M. (1990). The fifth discipline: The art & practice of the learning organization. Doubleday/Currency.

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