Dynamic Systems Limited (DSL) is a small information system consulting company which specialises in helping companies to
Question:
Dynamic Systems Limited (DSL) is a small information system consulting company which specialises in helping companies to implement production control software. The information systems consulting business is highly competitive and DSL must deliver quality service at a competitive cost. The company bills its clients in terms of units of work performed, which depends on the size and complexity of the clients production control system. The following data are provided:
2019 2020
Units of work performed and sold 60 70
Selling price Rs100,000 Rs96,000
Software implementation labour costs Rs3,600,000 Rs4,032,000
Software implementation support costs Rs720,000 Rs738,000
Selling and customer service costs Rs2,000,000 Rs1,881,000
Software development staff 3 3
Software development costs Rs 750,000 Rs 780,000
Software development cost per employee Rs 250,000 Rs 260,000
At the beginning of each year management determines the number of software development staff for the year, but is aware that software development is an important factor in the companys strategy.
(a) Outline the four major sections of a balanced scorecard for DSL, and indicate at least two measures for each section.
(b) Explain why each measure is likely to lead to improvements in performance. (c) Outline the issues which you may face when implementing the balanced scorecard.