Can the Balanced Scorecard be applied in technology-based companies?
The Balanced Scorecard has been applied successfully in virtually every industry, from long-cycle companies in pharmaceuticals to short-cycle ones in fashion retailing. But technology-based companies, like National Bank Online Financial Services which we use as a case study in the book, are often said to be changing at Internet speed, seven to ten times faster than the normal pace of business. Using technology rather than real estate for infrastructure, e-companies can change their product portfolios and distribution channels seemingly overnight. Second, the industry is in a state of rapid flux and instability, so strategies are continually evolving and changing. At present, e-companies are staking out territory by attempting to compete simultaneously on price, service, customer intimacy, and innovation. Yet e-companies that are continually evolving their strategies need a system for rapid strategy implementation even more than stable companies. These companies’ strategies are still ba
