Theory and practice of technological corporate assessment
by Matthias H. Hartmann
International Journal of Technology Management (IJTM), Vol. 17, No. 5, 1999

Abstract: Conventional audits of a corporate assessment rely heavily on key accounting figures and finally on extrapolating data from a historically oriented analysis of balance sheets or on an estimate of future revenues (gross rental method) or cash flows (discounted cash flow procedure). What is lacking is a substantive statement of technological potential, which is central for assessing sustained turnover and profitability in the future. This gap can be filled through a technological assessment to complement conventional accounting. By taking both a technological and financial perspective, a two-dimensional technological and financial portfolio with the dimensions of technological and financial attractiveness can be developed, which enables key elements to be differentiated in a corporate assessment. A company's technological attractiveness can be assessed by using a technology balance sheet that complements the trade balance sheet, which is used to illustrate and evaluate a company's technological potential. The result is a future-oriented, highly aggregated overall overview of the technological situation. Just as the trade balance sheet, the technology balance sheet can also be understood as a system of logically related and structured key figures, which mathematically link asset and liability items. It is developed according to specific principles and likewise offers several ways to analyse balance sheets. The process of a technological company assessment is illustrated by using the example of a company in the smart card industry. Afterwards, the technological and financial assessments will be consolidated into an overall evaluation.

Online publication date: Sat, 05-Jul-2003

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Management (IJTM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com