A Strategic Decision Support System at Orell Fussli Author(s): Salvatore Belardo, Peter Duchessi, John R.

Coleman Source: Journal of Management Information Systems, Vol. 10, No. 4 (Spring, 1994), pp. 135157 Published by: M.E. Sharpe, Inc. Stable URL: http://www.jstor.org/stable/40398097 . Accessed: 31/08/2011 00:57
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at Decision A Strategic System Support OrellFussli

SALVATORE BELARDO, PETER DUCHESSI, AND JOHN R. COLEMAN

the lhe from Rochester Institute of Salvatore Belardo received B.S.MJE. degree the of the and from State University NewYork, M.S. and Technology, M.B.A.degree He Institute. has worked theEastman for Ph.D. degrees from rensselaer Polytechnic He and Arsenal. presently KodakCompany, General teaches Electric, theWatervliet of His anddoesresearch the at State research University New YorkatAlbany. current includestrategic of information uses multimedia interests to resources, approaches in Dr. anddecision and making, creativity. Belardohaspublished a number learning of journals, Science,Journal Management of Information including Management on and Man DecisionSciences, Systems, Interfaces, IEEE Transactions Systems, and He is a member TIMS. of Cybernetics. Science and Information Peter Duchessi is AssociateProfessor Management of ScienceandInformation and of Systems DepartSystems Chairman theManagement of School of Business,StateUniversity New York at Albany.His areas of ment, and business include internal external and analyses, development implemenexpertise such and tation advanced of decision technologies as decision systems support support in He and management. has published several journals, systems, total expert quality and Review. Science, Interfaces, theCalifornia Management Management including where received Diploma in he the JohnR. Coleman waseducated London, England, in and of Technology printing design.Mr. Coleman has over twenty-five years in He international experience security printing. holdstheSwissFederalDiplomaof as studiesfortheM.B.A. in Switzerland well. Mr. and has completed Commerce of Colemanis ManagingDirector Orell Fussli GraphicsArtsLts. and Banknote Zurich. Printing, Abstract: Strategic decisionsupport DSS) are one meansof systems (strategic DSS contain and its implications. understand Strategic strategy managers helping and for decisionsupport (DSS) features, are intended senior system manygeneral of DSS the Thisarticle discusses ongoing development a strategic forthe managers. The Divisionof OrellFussli,a Swiss printing Banknotes Securities and company. and cases,andguidmodels, provides explanations, conceptual system incorporates in Ithelps train models anceonhowtousethe concepts managers strategic effectively. and has been used to help developand validate and facilitates thinking, strategic use several We including guidelines, practical strategies. also provide product/market
whosethoughtful comments to reviewers are The greatly Acknowledgment: authors grateful the article. of the improved quality this
Journal Management / 1994,VoL 10,No. 4, pp. 135-157 of Information SystemsSpring ME. Sharpc, Inc.,1994 Copyright

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BELARDO, DUCHESSI,

AND COLEMAN

of multiple different and of modelsto present perspectives provision a conceptual to models. system's The features and frameworkorganize those management strategic add of guidelines to ourgrowing knowledge how to electronically support strategic thinking. Key words and phrases: conceptual intrinsic decision models, analysis, strategic support systems, strategic thinking.

in Strategic decision support systems(strategic executives their DSS) support The systems intended top activities are for [17, 18, 45]. strategic management withexecutive information management, theyare notto be confused yet systems information and functions access,monitoring, control (EIS), which primarily perform A for executives. strategic is a specific DSS instance a DSS andprovides of comparablefunctionality, as business such and sensitivity "what-if" or modeling analyses that absent from are EIS. and there a number implemented usefulDSS, progress are of toward Although the low deployment thesetypes DSS hasbeenslow. Among reasonsfor of strategic of systems thecomplexity strategy thelow credibility computer-based are and of of With feel to some executives that information regard theseconditem, approaches. havelittle offer them havebeenreluctant acceptthesystems their and in to to systems offices utilization EIS maydispelthis of thegrowing notion open and [21].However, thedoor to thedevelopment implementation strategic and of DSS. In performing senior can benefit from DSS tasks, strategic decision-making managers strategic that relevant information models helpthem and to understand threats, present opportuniand Thesesystems also present can the ties,internal capabilities, suitable strategies. themany internal external and factors require that considinterdependencias among eration during strategy development, including manufacturing capability, pricecomand petitiveness, product technology. We discussstrategic DSS and describe one system that was developedforOrell a Swissprinting We beginwith discussion strategic a of DSS and Fussli, company. them from of other distinguish types systems, namely, (ES) andEIS. expert systems After information OrellFussli,we present current on the Then background system. we present set of guidelines principles designers strategic a and for of DSS; these weredistilled from experiences building system. finish our in the We with guidelines a conclusion presents implications ourwork. that the of

DSS Strategic
Strategy is a loose and imprecise term. Whilemostcan agreeon theorigin of theterm the there numerous are (from Greekword"strategos," meaning "general"), definitions reflect that different of we see points view [5, 12, 35]. As a result, often different suchas strategic [11,43], strategic terminology, planning [33, management formulation 35], usedinterchangeably. 39] and strategy Weihrich notesthat [3, [43]

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the that on does focus a definition describes endsofstrategy where someauthors (i.e., focuson themeans(i.e., how will the wantto go?), whileothers theorganization In to bothmeansand ends,Hoferand there?). an effort combine get organization that three a of levels of Schendel[14] developed hierarchy strategies distinguishes strategy: Corporate the an should in be strategydefines setofbusinesses organization of for eachbusiness; andtheextent resource deployment appropriate Business strategyfocuseson how to competein a particular or industry segment; product/market Functional on and areastrategyfocuses theefficient effective utilization of resources. of has processes:strategic planning, Strategy also been viewedas consisting three and opportunistic decisionmaking is [42]. Strategic thinking, strategic planning a used to developa planofactionforthecompany. analysis comprehensive Strategic in a to and results creative decision waysfor company develop, opportunistic thinking andopportunities willconfiront company. that the is anticipating making problems and DSS one DSS are evolving, strategic represent aspectof that evolution. Thus, DSS several DSS features database 36]), they whilestrategic inherit [19, (e.g., employ that features intended strategic additional for models) arespecifically (e.g.,conceptual Table 1, which based uponthework Turban[40], lists is of activities. management DSS several and attributes ES, EIS, DSS, andstrategic for of technical, problem, user ofuse).Variations between Turban's ofa DSS dimensions conception (e.g.,frequency the DSS andtheone suggested ourDSS appearin boldunder strategic column. by DSS provide moreexplanatory Withregard thetechnical to dimensions, strategic use and analogiesto than information DSS and EIS becausethey cases, examples, facilitate oftechniques, stimulate and ES use thinking. also provide concepts, explain a traceof their but information, through reasoning process.DSS use explanatory or research models.Strategic DSS (OR) models, statistical operations quantitative, the models(e.g.,valuechainmodel)with OR models.ES combine conceptual may and and drill-down userules, mechanism; EIS employ facts, aninferencing summary, andtime seriescapabilities. relative DSS andES, strategic relyon to DSS the dimension, Concerning problem of identification data of and bothinternal external foranalysis internal capabilities, Theexternal areoften data of and limited, threats, determinationcompetitive posture. and data marketing, newproduct developcompetitors' on coststructures, especially financial data but external (e.g.,Dow Jones mentEIS mayincorporate figures), they DSS problems occur financial operational and data.Strategic on internal relymostly and set have less frequently, a smaller of standard procedures, have longertime than business those addressed onthe and horizons a more problems impact significant with vehicle EIS. Forexample, routing product migration compare byDSS, ES, and one OR vehicle A formulation.DSS for routing incorporates ormore models strategy data and makesuse ofinternal (e.g.,distances, for routes, times, waiting formulating on a dailybasis. A strategic and vehicleweights), mayhaveitsroutes implemented

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has set DSS forformulating product migration strategies a morelimited ofstandard and external onpotential data of countermoves competitors, has procedures, requires on broader and sales) impact thebusiness. (e.g.,manufacturing, marketing, the for DSS is the Finally,withrespectto user dimensions, impetus strategic of than of effectiveness rather theimprovement improvement strategic management tactical operational and whichis thestimulant DSS, ES, andEIS. for effectiveness, DSS are designedto support in executives theirstrategic Strategic management rather staff, than middle andtechnicians, users DSS and the of activities, management, ES. Theyarealso usedless frequently DSS, ES, andEIS. than DSS and either describes theoretical Strategic arejustemerging research underpinfor or basedarticles describe modern nings them specific applications. Theoretically or frameworks strategic include to that ofthreats, approaches management analysis and of situations; opportunities, strengths, weaknesses; description strategic generaand and of of tion,evaluation, selection alternative strategies; monitoring performance.Excellent of examples themodern approach appearinYoo and Digman[45] and Wardet al. [42]. Other research focuseson human decision-making phasesof and choice,and factors affect that decisionmaking, intelligence, design strategic and duration 32]. [24, including problem homogeneity, knowledge, problem problem Examination theappliedworkindicates of thatstrategic DSS applications have evolvedintwodirections: andgeneric [35] systems application-specific packages[7, demonstrate application-specific that are to 29, 41]. Thesestudies systems tailored a The systems or industry their specific product/market, organization, setting. present modelsaccording theorganization's to framework. remain To strategic management the do the with strategic a flexible, generic packages not integrate models management framework offer or adviceon whenand how to use them. The quantitative models includeeconometric models [18], decisiontablesand trees[6], and mulcriteria models[16]. Conceptual modelsarejust beginning emerge to as decision-making The literature replete withexamplesof how conceptual is important components. models havehelped facilitate are [9, strategic thinking 27,28,44]. The successstories for models'popularity strategic modeling as DSS partially responsible the techniques. Some examples conceptual of models are:product cyclemodel[20], multifactor life matrix matrix [14],product [13],valuechainmodel[28],Porter's portfolio portfolio fiveforcesmodel [27], threats, weaknesses and strengths opportunities, (TOWS) matrix and evaluation [43],andstrategic position action (SPACE) [31]. Thesemodels showtheinterrelationship variables suggest and amongcritical pertinent strategies. For example, SPACE evaluates company four a on dimensions (financial strength, and and competitive industry advantage, strength, environmental stability) suggests basedupona company's assessment those of dimensions. strategies We taketheview (heldby others) managers' that of and acceptance quantitative modelsdependsto a largeextent their on of themodels' conceptual understanding and of solutions 23, 24, 38]. A simple [1, underlying principles thequality their serves illustrate first to the of example pointAs part an awareness exercise, building weaskedseveral OrellFusslimanagers placea particular to on themultifactor product The matrix. matrix, which attractiveness portfolio size, juxtaposesmarket (market

SDSS AT ORELLFUSSLI

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relative sales/distribution share, rate)with competitive position (e.g.,market growth and identifies assess a company's position effectiveness), present helpsmanagers the or desirable The to position. necessary maintain position movetoa more strategies to in failed placetheproduct exactly who managers, managers, wereall senior-level discussionamong the the same place on the matrix (see figure1). Subsequent differences the revealed notable each among criteria used toevaluate they managers that and such Andersen Rohrbaugh suggest differences as these dimension. [2] may differences causedbydifferent of be theresult individual experiences, perceptions, that Ackoff andLittle andpreferred outcomes. [1] [23] suggest usersneedto underin be use. modelsand must trained their Little[23] wenton to say a stand system's to contribute learning introducing the are that onlinemodelsthat user-instructing by DSS issues.Thus,strategic require and usertoproblem- model-related explanations in on context and ofmodels, criteria, examples howtousethem, preferably a familiar can cases. Additionally, thatcan be provided company-specific explanations by toresolve differences. communication facilitate helping amongmanagers,

OrellFussli
Swiss company thatbeganprinting Orell Fussu is a five-hundred-year-old the after invented movable booksinZurich Gutenberg type fifty approximately years Division banknotes and and Fussli'sBanknotes Securities prints printing press.Orell of a and of for securities a number countries marketsnumber other products including havea blackmagnetic cardswhich to cards(also referred as stripe debit credit cards, as The divisionhas an excellent and Euro-checks. reputation a attached), stripe the securities state-of-the-art firm, technology printing employing finest high-quality, it to Whileit has migrated electronic and printing methods, still printing expertise. "Old World"printing as viewsitself an company. some of thedivision's that Severalchangesare taking place worldwide threaten that securities havebeenoneofits crafted The businesses. beautifully most profitable a of have been threatened a number events, cash generators including by primary the data electronic interchange, need to alleviateback-office toward trend growing for the in causedbycumbersome bottlenecks banks documents, demand larger physical currencies The in markets. paper andchanges financial denominations, produced the by numerous It thebestin theworld. employs are division considered techniques among in and but to developments copia"technology a counterfeiting,recent designed thwart Ml on some toward in countries trend some supply plastic putting oftheir money possible this as an cards chip) (with integrated threaten business well[25], it for OrellFussli has been profitable years, recently has experienced Although of The director OrellFussli's Banknotes lossesanda changein ownership. financial the Divisionrecognized need forhis businessto move in a more and Securities was the He direction. decidedthat bestwayto improve profits to use the profitable to and technical international favorable division's competencies develop reputation DSS ofthestrategic , the He markets. commissioned development newproducts and/or rather focuson strategic for was andhisviewpoint responsible thesystem's thinking

142 BELARDO, DUCHESSI, AND COLEMAN

Market Attractiveness ' |

High (^)

Middle

Low

Weak

Middle

Strong

Relative Position Competitive 1 m A 1 Manager B Manager C WB Manager

Multif actor Portfolio Matrix Perspectves: Figure1. Differing

The at decision than and/or making. situation Orell opportunistic strategic planning selection of our and Fussli emphasis strategic on including thinking guided design, to and ofreal for models strategic thinking incorporation cases demonstrate conceptual useofthose models. Division to We designed system OrellFussli'sBanknotes Securities the for and in strategic educate train and as wellas to facilitate managers concepts strategic The a of to models help management thinking. system employsnumber conceptual and Italso several cases help to identify assess strategies. presents managers pertinent inthecontextofdivision's understand the how models beused can the history, together market and constraints. situation, operating competencies, high technological Orell Fussli's Strategic DSS ThestrategicDSS designed Orell Fusslj isprimarily for vehicle a training for several have it actual strategic concepts, although managers used tovalidate strategies andother have or The is managers usedit to formulate,"craft" strategy. system menu-driven consists three and of sections: andApplication. Tools, Tutorial, major

Tools
The Tools sectioncontainsconceptualmodels that widely discussed and employed are in marketing, and such as product matrix, strategy, information portfolio management,

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mullifactor and valuechain life matrix, SPACE . model, portfolio product cyclemodel, reasons: themodels, the for models several We chosethese (1) particularly lifecycle andareuniverand havebeenresearched discussed andthevaluechain, extensively, that thesemodelscan be and suggests sally recognized accepted[4]; (2) research in to companies facilitate strategic by effectively employed managers medium-size are matrices classic examples theproduct multifactor and of (3) portfolio thinking; and matrices conducting for two-dimensional analysis, portfolio product/business Electric and Shell); and (4) have been used by numerous (e.g., General companies to overdimensions decisionmakers consider, for twoadditional SPACE provides models[10]. the scopeofthetwo-dimensional coming narrower with knowledge the the that to DharandJaike[8] argue itis importantprovide users of that and,in theTools section, goes intothedevelopment themodel.We concur itsunderlying eachmodel, that criteria, logic, provides functionality explains provide Thesefeatures forsetsof conditions. and recommends and assumptions, objectives the in section thosedescribed theTutorial below)helpusersunderstand (alongwith of decision and a form extended and recommendations represent models their support a use and for throughseries system [17].Forexample, support facilitating encouraging the multifactor of can obtaina detaileddescription of menu options,managers dimensions of definitions its underlying matrix, (i.e., market including portfolio of information andsources important and attractiveness relative position) competitive The system information sources so provides (e.g.,A.C. NielsenandCOMPUSTAT). vis--vis oftheindustry. that can aboutthedivision's performance managers inquire ROI maybe unsatisfactory, For example,a 10 percent especiallyif theindustry assessment a model's various of This information facilitates averageis 15 percent. or"grand for The also dimensions. models recommend strategies," various objectives, if a manager For example,fora specific selects a cell that situations. product, relative to attractiveness strong and competitive position, corresponds highmarket as matrix recommends the then multifactor protection an appropriate objecportfolio detailed can selective.Managers also viewvarious by protection strategies making from submenu. the tions via the access to information does notprovide electronically Currently, system interface budgetary and constraints becauseofsystem CD-ROM oronlinedatabases over of Services as well as uncertainty the direction the EuropeanInformation behind oftheUnitedStates, that there Whiletheindustry considerably lags industry. databases availabletoEuropean are CD-ROM and online [37]. European managers whichmaybe due to theabsence CD-ROM overonline databases, managers prefer in that the of Factors impede development for ofstandards online technology Europe. For the and differences. example, French include standards legal,linguistic, technical witha particular withASCII [26]. Whileworking is Minitelsystem incompatible The the information. system for are model, managers responsible obtaining requisite a to the describes information by required a modeland provides reference it The theinformation. to have severaldirectories helpthem division'smanagers acquire that CD-ROM and onlinedatabases is One directory a 36-pagedocument describes environmental thatcontain economic,social, and information, including political,

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on instructions how to access each data. The document provides specificindustry a the cost of downloading record. connecttime,and database,cost per minute on basis; Managersuse onlya fewdatabasesand CD-ROM applications a routine for card these readily are availableonother Forexample, thestripe business, systems. thedivisionmaintains directory contacts contains a that of numbers, telephone key resides and recent conversations. directory This about words, expressions, a narrative the on a dBase IV system is availabletoall managers that throughout company.

Tutorial
can decision Schwenkand Thomas[34] suggest that decisionmakers benefit from in aids whenthey discussed relation familiar are to management During problems. in wereintroduced strategic to management programs which managers development in with we that to concepts, found managers preferred usethemodels conjunction real three and cases to cases. Thus,theTutorial section contains Banknotes Securities' the demonstrate use of themodels.Each case is based uponone of thedivision's The three and cases are banknotes, securities, plasticcards.The system products. walks managers whatconstitutes management a consultant's of the use through modelswithdialogto helpthem the of understand appropriateness each modeland theimportant the between situation related and For relationship strategies. example, ifa manager choosestoviewtheplastic cardcase,thesystem an explanation provides ofhowthevarious models couldbe usedtoanalyzethesituation presents and several partof theplasticcardstutorial contains discussion the a of potential strategies. costs associatedwitheach value-addedactivity involvedin the production and distribution plastic of cardsand of thecompanies areconsidered that in leaders each ofthoseactivities. system recommends The also that appropriate strategies aretiedto thevalue-added and contains glossary terms sourcesof relevant a of and analysis, information.

Application
The Application section consists twostages six stepsthat of and bothsystem require anduserparticipation. first The define incremental an stagehelpsmanagers improvement an existing to a to It and/or newmarket of product opportunitypursue. consists three and steps:(1) strategic product/market (2) position, product/market objectives, via valuetask The (3) strategic to thinking intrinsic analysis. secondstageis designed make managers aware of the gap betweenthe division'scurrent situation (e.g., and for markets, capabilities, manufacturing technologies) a moredesirable position and a new It them evaluate making marketing product. alsohelps specific product/marketstrategies accomplishing for stage1's product/market objective(s). The following sections describe stagesand stepsin thecontext stripe the of cards and smartcards. Stripecards are plasticcards witha black stripethatcontains such identification information, as personal number, dates,and chargelimitations. Smart cardsareplastic cardswith nonvolatile memory, security logic,a microproces-

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with device. to and ability communicate a reading sor, the They represent opportunities we card For andstripe makers. eachstep, describe tasks traditional for generic plastic and one seniormarketing executive's by performed thesystem user,and describe (see Tables 2 and3). analysis Analysis Stage 1: Product/Market In the position: step1,thesystem displays product product/market Step1: Strategic life that matrix theproduct cyclemodelandrequests managers and place an portfolio The product matrix on each diagram. juxtaposesmarket portfolio existing product market four ratewith relative shareto distinguish classificaamong product growth stars market market cashcows (low market tions: share), growth, high growth, (high market and marks low share), dogs share), growth, maiket (high question highmarket life The model low share). product cycle among distinguishes (lowmarket growth, maiket and Each stage has life four introduction, maturity, decline. growth, cyclestages: product and suchas sales,costs, customers, marketing and different characteristics, objectives. the current to allowsmanagers describe product's Thisexercise product/market position, in next which system topresent the uses objectives the step. product/maiket cardin thestars of the cell placedthestripe manager step1,themarketing During of theproduct cyclemodel.The life and matrix thegrowth stage portfolio product and market thedivision had a cardsto be a highgrowth considered stripe manager of share theSwissmarket. significant In basedon the position product's objectives: thesecondstep, Step2: Product/market to severalobjectivesformanagers and model,thesystem in the matrix presents - namely,increasing the market share for questionmarks,extending consider for and and lifefor cash cows,bundling products services stars, divestiture product's and them understand objectives toprepare the In addition, helpmanagers to for dogs. several cases and the on forsubsequent presents steps, theuser'scommand, system them. and that anecdotes explaintheobjectives describes waysfor achieving with the or recommended Forthestripe card,thesystem bundling products services for had For to cardas an objective pursue. a stripe card,themanager several options card (e.g., use laser to the objective:add moresecurity the existing achieving service customer to imageon thecard);improve technology embedthecardholder's such for information thedivision's card maintain holder's customers, as banks (e.g., functionalelectronic the that andfinance companies distribute cards);andbuildmore In the a helped ityintothecardbyembedding microprocessor. thenextstep, system and of the determine specificnature theseimprovements formulate the manager several strategies. product/market In via valuetaskanalytis: step3, thesystem poses thinking intrinsic Step3: Strategic We thesetasksto buildawareness the of tasksformanagers. designed tengeneral in of abouttheproduct terms valueandto helpstimulate intrinsic thinking product's valuetasks that system the intrinsic Here uses nontraditional andmarkets. areseveral andmanagers interpret presents

146 BELARDO, DUCHESSI, AND COLEMAN

Table 2

and CardEvents, Activities Smart Steps, Generic Stage1: Generic CardEvents SequenceofModelsandSmart Generic activities smart Eventsfrom cardexample

Generic steps

1 . Strategic product/market System displays Product Manager placed stripe card Portfolio Matrixand Product in stars cell of Product Portfoposition Life Cycle Model Ho Matrixand growthstage User locates existing prod- of Product LifeCycle Model uct on matrix and model 2. Product/market objectives System presents several objectives System recommended bundlingproducts or services withstripecard On user's demand, sys Manager reviewed cases ternpresents cases and an- and anecdotes ecdotes to clarify objectives Manager interpreted intrinsic value tasks, used value chain model and reviewed several cases Manager defined several value-added features for stnPe cards identified probable stakeholders, and formulated several specific product/market strategies

3. Strategic thinking via intrinsic value task analysis

System presents intrinsic value tasks to build awareness of product/market value and generate specific product/market strategies User interprets tasks On user's demand, systernpresents models and cases

properties; Identify partofa customer's the valuechainon whichtheproduct service or focuses; Identify byproducts information are being or that that can be any produced bundled with existing the orservice. product

Describe features theproduct service the of or without reference itsphysical to

The first helpsmanagers task visualizetheintrinsic valueoftheproduct which can be readily to the extend lifeof the the markets, transported other helping company For a cardcanbe described a 2 x 3 inchpieceofplastic as to product. example, credit or as of the replace paper money, itcanbe viewed a means solving bottleneck problem thatresults from need to ship,store, processphysicaldocuments, the and suchas checks. Given latter the the valueofa plastic real cardis that is a solution it description, to problems the flowof materials curinvolving physical (e.g., largesupermarkets use of to rently variations creditcard features solve inboundlogisticsproblems associatedwith delivery merchandise). result theintrinsic the of The of value task ofa credit cardmaylead toa newapplication, example, a tollbooth for at on analysis a highway bridge: or licenseplatescouldbe outfitted credit-card-like with features

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Activities and Table 3 Stage2: SequenceofGeneric Steps,Generic CardEvents Smart Generic steps
4. Strategy evaluation with MPM

Generic activities

Events from smart cardexample

System displays MPM Manager placed smart card in User locates new producton the high marketattractiveness MPM and medium relativecompetitive System presents MPM criteria positioncell of MPM User evaluates MPM criteria Manager assigned values and On user's demand, system weightsto criteria describes MPM criteriaand pre- Manager used value chain scribes information sources model to enhance analysis On user's demand, system System displayed results of MPM analysis in a less desirable presents models (e.g., value chain model) to help evaluate cri- cell (medium marketattractiveteria ness and low relativecompetitive System computes measures forpositioncell), indicating MPM dimensions and displays re- weaknesses in marketingand suits on MPM to show implemen- manufacturing new product the tationgap and weaknesses On user's demand, system pro-* Manager evaluates ways to imvides options forchanging MPM prove company's position. He excriteriavalues and weights, and amined several jointventures to determinetheireffectiveness and displays results on MPM Via targetoption, system seimpact on business lects MPM criteria additional for analyses System displays SPACE model Manager repeats strategyevalu Users locates new producton ation withSPACE Ore Fussli decides on joint SPACE System presents SPACE cri- venturewitha company outside teria Switzerland to produce Smart User evaluates SPACE criteria Cards On user's demand, system describes SPACE criteria and sources presents information On user's demand, system presents models to help evaluate criteria System computes measures for SPACE dimensions and displays results on SPACE to show implementationgap and weaknesses

5. Sensitivity analysis

6. Strategy evaluation with SPACE method

deviceso that vehicles wouldnothave that couldbe readelectronically a scanning by new Each example a potential product/market tocometoa complete stop. represents cardproducers. for opportunity credit toward objective bundling the of features or The nexttwo tasksguidemanagers

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BELARDO, DUCHESSI, AND COUEMAN

The seven the a services viewing product from customer's by perspective. remaining in where product the markets taskshelpmanagers stakeholders other might identify the be sold,identify understand innovaof characteristics thetarget users, adoption that maneuvers had made decision tion-adoption process[30],andidentify strategic the to orstrategic maneuvers wouldbe necessary help that successful, product initially a company share. anytime, At can models, gainmarket including managers activate thevalue chainmodel,or view a number well-known of General cases, including RJNabiscoandGeneral as a wayofhelping them learn Foods,Volvo/Saab, Electric, the how byexample.Forexample, Aimand Hammer BakingSoda case illustrates a cash cow can be revitalized identifying a product's intrinsic valueand usingthis by to or The American insight developnew businesses uses fortheproduct. Hospital case how SupplyCorporation illustrates thevaluechaincan helpmanagers identify or products servicesthatcan be bundledwithan existing product. Duringthese for the exercises, managers developspecific product/market strategies accomplishing that system the instep2. objective(s) presented Instep3, the each with objective bundling the of marketing manager interpreted task or withthestripe cardand,as a result, a defined listof generic, products services value-added features a card-sizeplasticinstrument, as largenonvolatile for such electronic andread/write memory, control, security logic,microprocessor capabilities that beyond capabilities thedivision's the of cards. the go existing stripe Collectively, features constituted advancedsmartcard. In addition, identified list of an he a Swiss andGerman local and internastakeholders, including potential competitor's tional andglobalcustomers. smart The cardrepresentednewproduct a for producers thedivisionand presented new market At opportunities. theend of thisstep,the also the manager specified following product/market strategies: Acquire with distribution network and knowhow, existing competitor technical customer base; Develop in-house for and expertise production, marketing, sales; Forma jointventure existing with tomakeand/or market cards the competitors in neworexisting markets.

Thesestrategies evaluated stage2. are in Stage2: Product/Market Implementation Analysis for issuesassociated with the Stage2 prepares managers addressing implementation newproduct/market from 1 andconsists three of strategies stage remaining steps:(4) evaluation with multifactor matrix strategy portfolio (MPM); (5) sensitivity analysis; and 6) strategy evaluation withSPACE method. MPM and SPACE helpmanagers think aboutimplementation for A description of strategies thenewproduct/market. howtheMPM modelis usedillustrates final the session. stageof theApplication evaluation MPM: Atthe with of Step4: Strategy 4, beginning step managers placethe newproduct theMPM based on their on of itsmarket attractiveness understanding

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or and the company'srelative Next,the position, businessstrength. competitive with setof criteria bothmarket a for attractiveness (e.g., managers system presents and relative market size, value added,environmental competitive impact) position facilities share,pricecompetitiveness, location)to evaluatespecific (e.g., market a five-point for newproduct. the scale( 1 = low, rating strategies Using product/market valuestothecriteriaand them reflect relative to their 5 = high), weight assign managers in The system defines criteria theTutorial the and provides section, importance. information comparative onlineand for sourcesof pertinent purposes (e.g., print, to CD-ROM sources).Wherepossible,it provides averagesin order help industry On canuse thevaluechainmodel theexercise. demand, managers complete managers of activities thenewproduct associated and the costs.The tounderstand value-added and valuesand weights theMPM criteria provides to modelhelpsmanagers assign with and activities associated into additional producing marketing insight theprimary understand The exercises thenew product. specific product/market help managers in to of for ability makeand strategies thenew product thecontext thecompany's it market successfully. for scoresintooverallmeasures market attracthe combines separate The system on and plotstheresult theMPM. If the and tiveness relative competitive position in to competitive position corresponds strong system plotsthenewproduct a cell that - themost desirable attractiveness market andhigh appropriate position itpresents in If plotsthenewproduct any alongwith examples. thesystem strategies protection andhighmarket attractivecell less desirable (e.g.,weakcompetitive other, position or to sensitivity target, help them mayselectone of twooptions, ness),managers When desirable and the evaluate positions. waystoclosethegapbetween current most which is thesameas thesystem's initial themanager's placement, placement product When intuitionconfirmed. is the evaluation the after criteria occurs process, manager's the scoresand can the is there a significant discrepancy, manager reevaluate criteria that or weaknesses strengths were toidentify via sensitivity specific analysis weights of obviousat thebeginning theanalysis. notintuitively in market attracthemarketing manager placedthenewproduct thehigh Initially, his cellofMPM,reflecting apriori relative medium and tiveness competitive position successthe to of ability makeand market newproduct understandingthedivision's scoresand MPM criteria, manager the the After system assigned displayed fully. He a to weights the criteria. also performed value chainanalysisto enhancehis valuechainanalysis of manufacturing The manager's steps. understandingimportant additional several that card card of one for version a smart revealed thesmart involves and cardperactivities, chip namely chipfabrication, programming, manufacturing the cardhad that smart this showed sonalization figure Additionally, analysis 2). (see cardbecauseof theadditional than cost different structure thestripe a significantly of Each and fabrication programming. type smart card,suchas activities, especially with differs andmemory microprocessor, with logic, memory security plainmemory, card analysishelpedthe and costs. The smart activities in terms value-added of curve effects, of assess a number MPM criteria, including experience manager he costs(see figure Forexample, reduced andrawmaterial investment utilization, 3).

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these other criteria a result thevaluechain as of hisinitial scale valuesfor and rating in the smart to better reflect division'slack of experience manufacturing analysis cards.The manager organized listof stakeholders stage1 according also the to from value chain activities, the of attractiveness facilitating evaluation MPM market market line and These share, factors, including product breadth, sales effectiveness. allowedhim identify between desired andselling to the state making for analyses gaps smart cards and the current stateof Orell Fussli's manufacturing marketing and After criteria the were evaluated, system for the measures capabilities. computed market and in andplotted results the the attractiveness relative competitive position medium market attractiveness low competitive and cell position of theMPM. This that in werecritical to and weaknesses thedivision's gaprevealed there ability market makethe newproducts, much that strategies buying existing so so the of an competitor orformingjointventure an existing a with in were considered the competitor heavily next step. the choosessensitivity Step5: Sensitivity analysis, analysis:In step5, ifa manager forchanging ratings weights anyof theMPM the and of system provides options criteria figure The system recalculates overall the measures basedon thenew (see 3). if valuesand displays results theMPM. For example, thesystem on the placed the in to market and attractiveness medium product a cellcorrespondinghigh competitive the coulduse thesensitivity to how position, manager analysis option determine best to move to a moredesirable In wouldexaminethe position. thiscase themanager and for criteria contributecompetitive that to weights ratings the position (e.g.,market line breadth, sales effectiveness). examining weights, and the share,product By can that managers focuson thosecriteria mostaffect competitive position. Ratings indicate extent additional the of effort resources must committed order and that be in to close thegap between current desired the If and choose to positions. managers increase market the makesthem consider other share, system criteria, simultaneously andproduction including capacity efficiency. If a manager choosesthetarget based uponprior and the option, ratings weights, identifies criteria wouldhavetobe improved achieve the that to system automatically a moredesirable If in to position. thesystem placedtheproduct a cell corresponding market attractiveness medium and the shows high position, target competitive option thecompetitive criteria wouldhaveto be changedto attain stronger that a position Criteria examined orderof highest in are and competitive first, position. weights criteria with offivearenotcandidates improvement. for ratings The marketing chose sensitivity the The manager analysisto reevaluate criteria. allowedthe toexamine several the of candidate sensitivity analysis manager strategies introduced above.Forexample, identifying the of weaknesses, magnitude by existing those weaknesses industry and the evaluated stakeholders, manager waysto improve thecompany's The manager considered in-house for position. developing expertise and sales, either alone or withtheparticipation another of production, marketing, an or a with company acquiring existing by competitor formingjointventure existing The tried various several competitors. manager jointventure arrangements involving

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in in that value-added activities which different companies arecompetent oneormore the Theseanalyses allowedhimtoevaluate effectiveness is thedivision deficient. of and on the several jointventure impact thebusiness. strategies their Additionally, of to allowedthemanager keeptrack numerous learnbyreviewing criteria; system and and analogies;view recommendations; recall theresults of cases, examples, analyses. previous In with the evaluation SPACE method: step managers 6, perform same Step6: Strategy The them with related criteria. SPACE other, presents analysis usingSPACE, which withadditional and via perspectives insights its analysiscan providemanagers is similar themultifactor to matrix and dimensions criteria. different Space portfolio are in included a function thespecific of and theTOWS matrix thatthefactors that framework consists two SPACE is a four-quadrant of under study. organization and and internal dimensions advantage) twoexternal (financial strength competitive Factors each dimenfor and dimensions stability industry strength). (environmental control over suppliers and for on sion (e.g., return investment financial strength; of for for distributors competitive advantage; priceelasticity demand environmental are selected and ranked. These forindustry and growth strength) potential stability; which usedto identify of is one a directional are factors then usedtocalculate vector, to recommended four defensive, conservative, strategies pursue: aggressive, generic thesystem several strateFor orcompetitive. eachgeneric provides strategy, specific thesystem market recommend for quadrant may gies. For example, theaggressive is of or various [31]. The purpose thisanalysis to strategies integration penetration, under abouttheproduci/market decision another with perspective managers provide a to of their awareness theactions and consideration, toincrease required implement actions. of as strategy wellas theconsequences those the of ofanalyses, management OrellFussli'sBanknotes of As a result these types severaljointventures. One jointventure Divisiondecidedto form and Securities cards thatwill manufacture smart and a Dutchcompany involvesbotha German will for initializathe of outside Switzerland; division be responsible personalization, of involvethedevelopment cardsformobile tion,and sales. Other joint ventures telephones. Design Guidelines and Principles The research that led to the current systemprovides several guidelines below. DSS. We discusseachofthem of for andprinciples designers strategic Incorporate Multiple Conceptual Models into Strategic DSS value models(e.g.,product several The system matrix, portfolio conceptual employs From our model. of the inorder overcome incompleteness anysingle to chainmodel) of the addresses complexity strategic no thinking. experience, onemodeladequately different dimendifferent The modelspresent by perspectives incorporating slightly

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BELARDO, DUCHESSI, AND COLEMAN

in much the viewsoftheproblem, with sionsandcriteria, providing managers multiple control and OR theory integer way DSS employee multiple models(e.g., optimal This can for greater insight programming allocation problems). approach givemanagers and issues. into formulation, eventual implementation strategic thinking, strategy their transform models makers As Merten out, [24] points conceptual helpdecision mental and transparent formal ones. The variation modelsintodiscussable among in associatedwith managers placeson a matrix placingproducts different provides criteria to resolve differfor to and ampleopportunity managers discussunderlying enceswhenconsidering strategies. potential product/market

a Framework Employ Strategic Management

Thesystem and models to organizes sequences according a general strategic managementframework fitsOrell Fussli and incorporates that strategic product/market and This formulation, implementation. framepositioning, strategic thinking, strategy workfacilitates selection the and orchestration themanypotential of models.For our of frameworkOrellFussliconsists the at of example, specific implementationthis models:thelifecycle and product modelsforstrategic following portfolio prodintrinsic valuetask for and uct/market positioning; analysis strategic thinking strategy and formulation; MPM, value chain,SPACE, and sensitivity analysisforstrategy another framework setof modelswouldbe reand implementation. Undoubtedly, for or other areasofstrategy, quired another company for including corporate strategy, functional strategy, opportunistic area and decision making.

Promote UserGuidance
The system facilitates use of system by providing explanations models,examples, that the in of While cases,andanalogies describe application models familiar settings. have an intuitive of to models,theyprefer managers understanding thesystem's a whichmakesit easierforthem define tutorial to the preface sessionwitha brief models'underlying We criteria. found managers that the examappreciate tutorials, andcases,andtheassurance suchsupport ples,explanations, provides. In addition, providinglistofcriteria a method subjectively a and to by them, weight thesystem allows managers consider to dimensions criteria and simultamultiple of that a neously.An initial listing thecriteria underlie modelmakesit easierfor to the owninternal and situation market condimanagers modify listto modeltheir rather create totally list than a new from scratch. functionality This with tions, together thecases,examples, explanations and discussed an aboverepresents implementation ofKeen's [17] notion extended of DSS.

Promote the Process throughout Development Learning

Houdesheland Watson[15] identified keysto thesuccessful six of development information decisionsupport and The management systems. keysare a committed

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defined defined informasenior executive, system carefully carefully requirements, an to devela teamapproach systems tionrequirements, development, evolutionary and selection. concur: We are hardware software these andcareful approach, opment We factor thesekey to to thesuccessof any system. wouldadd a seventh critical of the education usersthroughout a the successfactors, namely, needfor continuous a critical role in Zmud [46] notedthatusers' attitudes play process. development in it as is whether system usedand ultimately whether is perceived a a determining the attitudes that success.Educational regarding role preconceived programs address and userparticipation in of thesystem thedecision-making processhelpencourage use. operational

Conclusion
The system reported here helps managers leam about strategic concepts, has their facilitates and, thinking, in someinstances, beenused to validate strategic use several features including ofmultiple that Ourwork concepsuggests strategies. a and of tualmodels, framework, management organization modelsaround strategic - provide valuablefunctionality and cases to of examples, provision explanations, that also and of Our thinking. research indicates thetypes number strategic support will framework organizes that them and models thestrategic management conceptual of interaction continuous and education users be determined user-researcher by the models and the throughout development process.In identifying appropriate for framework thesituation, mayneed to educateusersaboutthemost developers and can to models howthey be applied their company. Although conceptual applicable ten we expect as were approximately years EIS DSS areintheir infancy, ago, strategic in similar those oursystem, strategic to and DSS features to future systems incorporate areasof strategic toexpandtoother management. REFERENCES
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