Presenter : Sandra Chen 陳奕嘉 Instructor : Kate Chen 陳姿青 April 21, 2010 The application of BSC model to guide the Hi-Tech company strategic management - A case study of Acer Presenter : Sandra Chen 陳奕嘉 Instructor : Kate Chen 陳姿青 April 21, 2010

CONTENTS INTRODUCTION LITERATURE REVIEW RESEARCH METHODOLOGY RESULTS CONCLUSIONS AND RECOMMENDATIONS

INTRODUCTION Many high-tech corporations confront the challenges of increased competition and highly unpredictable business environment, therefore they are seeking new ways to evaluate performance and better meet their goals. (Missroon,1999)

INTRODUCTION Among the various new management tools that have been devised, the BSC (Balanced Scorecard) has been found to be a highly effective tool for helping corporations in their decision-making processes. (Missroon,1999)

INTRODUCTION The BSC offers not only financial measures but also non-financial measures. (Kaplan & Norton, 1992,1993)

INTRODUCTION In light of its potential effectiveness, the BSC model continues to be revised and updated in order to enhance its applicability to different corporations and operating environments. (Cobbold & Lawrie, 2002)

LITERATURE REVIEW Conceptual Framework of the BSC Origins and Evolution of BSC The BSC was originally designed to be a comprehensive tool that allowed managers to directly monitor their companies’ performance by acknowledging several perspectives at the same time. In order to increase the ease of using the should be limited to four specific perspectives: financial, customer, internal business, and innovation and learning (this measure was renamed learning and growth). (Kaplan & Norton, 1992,1993)

LITERATURE REVIEW Conceptual Framework of the BSC Three Generations of BSCs Cobbold and Lawrie described three generations of BSCs Each subsequent generation was created to eradicate the flaws and limitations of their predecessors.

LITERATURE REVIEW First generation scorecard Four Perspectives of the First Generation BSC

LITERATURE REVIEW First generation scorecard Financial perspective: deal with how the company has succeeded in achieving profitability and increasing shareholder value. Customer perspective: How do customer view the organization? (Kaplan & Norton, 1992)

LITERATURE REVIEW First generation scorecard Internal business perspective: What must the organization do to fulfill the needs of the customers. Learning and growth measures deal with the issue of how the organization can continue to improve itself in order to contribute to the success of the organization. (Kaplan & Norton, 1992)

LITERATURE REVIEW Second generation scorecard The practical difficulties of identifying the specific measures and the clustering of the measures into the four perspectives for companies undermined the creation of the second generation BSC. (Kaplan & Norton, 1993)

LITERATURE REVIEW Second generation scorecard Chain of Causal Linkages in BSC Context

LITERATURE REVIEW Second generation scorecard According to Kaplan and Norton, use of the BSC enables managers to link ling-term strategic goals with short-term business processes at all levels of the organization. Realizing the vision Transmitting the strategy Planning business strategies Offering feedback and learning (Kaplan & Norton, 1996)

LITERATURE REVIEW Third generation scorecard The third generation scorecard originated with the inclusion of an additional design element at the end of the process of the creation of the BSC during the late 1990s.

LITERATURE REVIEW Third generation scorecard The new components of a third generation BSC in the sequence are as follows: Create a destination statement Identify strategic objectives Assign the strategic objectives to the four different perspectives Select and/or construct measures Cobbold and Lawrie (2000)

LITERATURE REVIEW Applications of the BSC According to Anderson et al.(2000), the BSC can be utilized to fulfill various strategic management objectives. Helping management to focus on specific strategic objectives. Promoting the integration of strategic objectives and organizational performance. Ensuring investment of time and resources in activities identified as top priorities. Highlighting the importance of engaging in the continuous process of change and learning. Ensuring the compatibility of goals and rewards within the organization.

RESEARCH METHODOLOGY Research Design The research design of this study was a case study analysis of high-tech corporation – Acer. Using a qualitative analysis of current literature. This analysis would thus indicate whether the BSC is an effective strategic management tool that can help corporations to establish strategic linkages between their organization goals and the management of their business processes.

RESEARCH METHODOLOGY Data Collection Data for this study were gathered from articles on the Internet and journals.

RESEARCH METHODOLOGY Data Analysis The strategic objectives and the business re-engineering efforts for each of the companies were presented. These business re-engineering efforts were analyzed within the four perspectives of the BSC to determine its effectiveness as a strategic management tool.

RESULTS Acer’s Strategic Objectives Client-Sever Organization Structure Fast-Food Business Model Spinning Off Companies

RESULTS Re-Engineering of Acer’s Business Processes SBUs and RBUs are two general groupings from different groupings. They were given the power and authority to make their own decisions and determine how they could collaborate with one another to improve their business prospects.

RESULTS Re-Engineering of Acer’s Business Processes To realized the strategic objective like Product development, manufacturing and distributing processes The engineering department created Acer products that could be assembled quickly without using screws. Shih categorized the components of the computers into perishable and nonperishable group.

RESULTS BSC Analysis of Acer’s Business Re-Engineering Efforts Financial perspective Increase in its revenue Customer perspective - decrease prices and create a wide range of products and services

RESULTS BSC Analysis of Acer’s Business Re-Engineering Efforts Internal processes perspective grow and expand its operations in different parts of the world Learning and growth perspective Encouraging employees to be leaders of their own projective.

CONCLUSIONS AND RECOMMENDATIONS The strong interconnections between the four perspectives and the measures of each of the four perspectives can be seen by the fact that some of the measures for the perspectives are the same. In their business re-engineering efforts, Acer recognized how the daily work processes and their human resources affected the overall organizational performance.

CONCLUSIONS AND RECOMMENDATIONS Acer adopted a systems thinking approach by conducting a comprehensive transformation of their business processes. Acer also addressed all the principle components of their organization to ensure that their performance could be improved.

CONCLUSIONS AND RECOMMENDATIONS It should determine the overall preparedness, identify the barriers and consider critical success factors. No matter the senior management or employee should have completed their own duties. Members at the management level need to adopt a systems thinking approach. On a periodic basis, strategic objectives, measures and performance should be reviewed to ensure that they are compatible with the organization goals.

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