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Unformatted text preview: (as shown in Figure 3) will allow this firm to monitor its executions of
customer targeting and innovative strategies, representing changes of key cost drivers of financial
perspective, operational effectiveness, technology (organization learning) and customer
Financial Perspective: Financial indicators such as revenue, earnings, and growth rate should be
monitored by technology segments, customer segments, geographical diversity, and business
domains (capital, industrial and governmental). In addition, because DMK International is in an
emerging offshore outsourcing industry, it is more significant to measure planning gaps in order for
the firm to recognize required level of capability to serve clients, than it is for firms in a matured
and stable industry.
Operational Effectiveness: Six sigma activities that DMK International has already introduced
will provide the firm with key indicators of operational effectiveness (OE). In addition, the
penetration and productivity of foreign language capability of employees, which are measured by
the number of passing language tests, affects OE significantly. In tier one and two, which are in the
stage of system lock-in of the Delta Project, “Cost to serve clients” is regarded as a dimension of
OE rather than that of customer targeting (CT), due to the nature of the service industry, in which it
is difficult or meaningless to detach the cost to serve clients from delivery costs of OE.
Technology (Organization Learning): The sustainable growth of DMK as a whole depends on
how effectively the firm acquires new technologies and enhances its core capabilities that provide
competitive advantage, such as ERP, CRM and collaboration tools. In tier 1, the customer segment
of exclusive partners, the percentage of revenue of project using in-house IBM mainframe in
Dalian shows technological strength for DMK International to serve them without IBM supports. In
tier four, from a great pool of temporary clients, this firm needs to create efficient relationship with
new clients, which are possible to reach long term relationship with DMK International.
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This note was uploaded on 03/24/2014 for the course MGMT 15.904 taught by Professor Arnoldohax during the Fall '14 term at MIT.
- Fall '14