Product details. By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. Authors: Sirkka Jarvenpaa ; Blake Ives. Published by: Harvard Business Publishing.
Length: 16 pages. Topics: Analytic applications ; Computer systems. You must be logged in to access preview copies. Write a review No reviews for this item. Login to add to your basket. View our pricing guide or login to see prices. In order to address some performance problems, the firm underwent an organizational transformation based on a Baldrige-style commitment to quality. This case describes the transition from a product-based to a process-based organizational structure, from management control to work-force empowerment, and from reliance on functional hierarchies to self-managed work teams.
Length: 8 pages. View full details. Publication Date: September 08, ISSC--Dallas, an IBM subsidiary, provided applications planning, requirements definition, software development, and business systems testing.
In order to address some performance problems, the firm underwent an organizational transformation based on a Baldrige-style commitment to quality. This case describes the transition from a product-based to a process-based organizational structure, from management control to work-force empowerment, and from reliance on functional hierarchies to self-managed work teams. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity.
Quantity price applied. Add Copyright Permission. Copyright Permission Qty:. Current Stock:. Buying for your team? See quantity pricing. Asset turnover: this measure is widely used in order to measure the ability of the company in generating sales from the fixed assets.
Fixed assets turnover : it is supposed to be vulnerable to the asset valuation issue. It is most important ratio in companies which are capital intensive. It is comparatively low importance for the companies with minimum need for capitals such as leased retail operations and wholesale distribution.
In case an organizationis decreasing fixed asset turnover so it means that the production has been running at lower than capacity. Current asset turnover: it measures the current asset level that is require for supporting sales. The collection time is measured by days receivables on credit sales. Days of inventory: it is the indication of how the company efficiently managing inventory. Financial leverage multiplier : it is the connection between return on equity and return on assets of an organization.
It provides the way of looking at the relative equity and debt amount that has been using by company in order to finance the assets. Current debt to equity ratio: it is the mix if the debt of an organization. In case of high current debt to equity ratio, it means that the company would be in problematic situation while paying its bills. Equity turnover : in case of high debt to equity ratio, it might because of the too little equity or too much debt burden on an organization. In case of high equity turnover ratio, indicating that the shareholders have efficiently used equity.
It is considered as the best model as it does not reveal anything regarding the liquidity of an organization. One of the unavoidable advantage of this model is thatit has begun establishing benchmarks — across companies and over the period of time which can be used for flagging the potential issues areas where more than one ratios are reflecting the key problem or issue.
The useful snap shot can be taken by analyzing the financial condition of an organization in a particular time period. Also, there are many questions that can be bets answered by comparing the figures in Issc Solution Center Dallas Transforming Software Development percentages. For instance; which are the areas of company getting stronger or weaker?
Which areas are in need of immense attention? The major advantage is that it enables the significant comparison between time periods. There percentages are most likely providing analysts or managers with the fast or rapid way for finding key issues or problems. Additionally, the attention can be paid to certain weakness and strengths through seeing the appropriate changes over the period of time. The evaluation of the performance of company is often easier in case of having benchmark or standard performance for the comparison.
The suitable benchmark can be found with some problems such as unique attributes problem and averages problem etc. The Issc Solution Center Dallas Transforming Software Development assessment of the operational efficiency in the initial stage as a whole for business or any of the business sub-division is likely performed through a percentage analysis of income statement.
Individual expenses or cost items are associating to gross sales revenue adjusted for all allowances and returns. Cost of goods sold and gross margin analysis: in operational analysis the most commonly used ratios involves the calculation of the cost of sales as a percentage of sales.
The ratio depicts that the magnitude of the cost of services provided or cost of good manufactured or purchased in relation to gross profit or gross margin left over for operating profit and expenses.
It is noteworthy that the gross margin reflect the relationship of volume, price and cost. Such type of calculation needs very selective estimate or analysis of the variables and fixed cost or expenses of the company while taking into consideration the operating leverage effect. The earnings multiplier ratiois considered as a broad indicator of how the earnings performance and prospects of organization is judged by the stock market.
The straightforward calculation related the common share current market price to the most recent available EPS on the yearly basis. Relative movements in price: targeting for the purpose of creating the shareholder value depends on the relative performance of price. The movement in price are likely expressed in mentioned ratios and absolute dollar terms.
Value drivers : in recent time, the approach that has been significantly gaining the increased recognition is identifying the key elements standing out as vital in shareholders value creation of the specific organization.
Combining all of these lasting inevitable impact on the expectations of market regarding the cash flow generation and future success of the company. Value of firm: this is the most common concept recognizing the components of capital structure of an organization debt and equity are tends to be values separately in the market.
By having a closer look over the matrices used for financial analysis, it is to say that the financial statements holds notable importance because it evaluates the management performance, plans and corporate strategy for future. In addition, the financial analysis helps companies in making the more informed decisions for the firm. The underlying objective of the financial analysis is organizing the financial statement as well as other accounting data of an organization enabling the comparisons with other companies, also enabling to accurately evaluate raw data.
The particular section deals with the different ways the problem can be resolved. Many times these options are already in hand with the management or re-developed from the scratch through strong brain storming. In typical situation, there are three options that are developed in by the organization to deal with the given problem. The options developed entails and includes the maximum factor that the organization should analyze or achieve, thus offering great value. While developing The Alternative, the following factor are taken in account, in order to develop the best alternative that may resolve the problem effectively.
The cost includes if the option proposed is cost effective or can be afforded easily by the company without effecting the overall profitability and other operations of the company.
The consideration of cost is important in the alternative generation in order to attain the maximum feasibility with overall business strategy and the budget allocated. The reliability factor includes if the option developed is successful or has the successful track record in the past or with the pats companies. Such is important to analyze or else it would lead to failure.
The Invulnerability of the option is also analyzed, in order to understand the sustainability of the option if the one part factor is missing so to understand the suitability of the option. The merit factor, outlines if the option really resolving the issue or aligned with the given situation. The simplicity factor analyses if the option proposed is easy to implement.
Because adopting or proposing an alternative that is difficult to implement or takes a lot of resources with no definite outcomes is vain. In addition, the compatibility of the option is also analyzed, in order to understand if the given option is aligned and compatible with the procedures of the organization. Such factor analysis is important in order to avoid any resistance implementation and also save the resources and efforts.
Among the above factors, the reversibility factor carries high importance. It is due to the fact that the organization needs to analyze exact factor in terms of its reversibility to see, if the process can be reversed, if the option fails to offer the respective results. The ability of the option is considered while the alternative generation process, so gauge if the option will remains table, if the given situation and markets changes.
And will it make the organization sustained in the changing market situation. The robustness of the option also needs to be analyzed. It is due to the fact that such analysis allow the organization to see, if the option will remain strong in future or not. Apart from this while developing the option, it is important to consider the realistic nature of the option.
The option has to be realistic and should have imperative results on the organization. The realistic and SMART nature of the option is important to be considered and developed, so it offer maximum value and also resolves the problem effectively.
Hence, it is suggested, that while developing the alternatives, it is important to consider the realistic and smart nature of options along with the avoidance of developing such issues that are not offering the right solution or the suggesting such options that are of no use to the organization.
Alternative are the different ways of achieving a same end goal through two or more different methods. It is not a close substitute of a first define choice or other alternatives or must provide the solution of the problem in a particular way. For instance, lower price, special offer, and money back guarantee etc. Alternatives are generally mutually exclusive in a way that if we combine two or more alternatives together it will eventually create a new alternative.
They are the Issc Solution Center Dallas Transforming Software Development technical and economically ways through which the project can be carried out feasibly. It is encouraged to be consider especially for a projects that are large and complex in nature. Under the evaluation of alternatives the pros and cons of the alternatives developed above are gauged based on the benefits they offer to the organization and also the strengths the carry that may help the oragnation in overcoming the problem.
In addition to this, the disadvantages of the alternatives entails the costs that are associated with implanting the option, and thus required to be considered before the implementation process, in order to avoid any mishap in future or during the implementation. In addition to this, the careful and deep consideration is given to the political, economic, social and other porter 5 forces and pestel model so to understand the alignment of right alternative with maximum value and weightage in resolving the problem.
Moreover, under the particular section, the decision criteria is also developed. The particular decision criteria incorporates all the factors that the company aims to archives. Such factors may include sales, profitability competitive edge, market share and other. Once it is done, each alternate is compared against each other and with the decision criteria develop, and are given different weigtage.
These weigtage are given based on most favorable to least favorable, and the option with most rating s ultimately selected. This is important as it allows the organization in meeting the ultimate goals and addressing the problem effectively. Lastly, while doing the evaluation of Issc Solution Center Dallas Transforming Software Development alternatives, it is important to quantify the options through different techniques.
Though in many cases, it is difficult to analyze the feasibility of the options especially the intangible factor, however, quantifying the maximum option is important, in order to develop a clear image and understanding of option that will address the problem. In Addition it is also needed to be considered, if the given option or the alternatives have the right alignment with the organization and re offering value.
Perhaps, it is important to involve other members to take the active feedback on the alternatives, in order to gauge the value of the alternatives and the value it may offer to the organization in the long-term. The open discussion and review from past enables to see more clear picture of the ultimate outcomes, leading to better implementation and selection of the right alternative.
Once the options are developed and evaluated, the recommendation is made, on the basis of the best suited option that offers the maximum value to the company and address the problem succinctly. The recommendation is mad in away, that not only offers the solution the problem, but also depicts the implementation process and the course of action that the organization needs to take in order to be successful. A strong Issc Solution Center Dallas Transforming Software Development recommendation must cover the key areas as how the organization will implement the alternatives, what benefits will it receive if it implement the when alternatives and what could be the cost, that he organization will need to overcome or address, in order to effectively implement the alternatives.
Moreover, the recommendation also needs to entail the plan B, that if for instance the results are not generated as per the plan, the second set of recommendation must be incorporated in the plan, in order to allow the organization to quickly shift to the plan B, in order to avoid the losses and sustain the presence of the company in the market.
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