MELJUN CORTES research lectures_dss_decision_support_system

1. 1
Enhancing Decision Making
[Decision Support System]
Information Technology in Perspective
DS
MELJUN CORTES

2. 2
Information Technology as a
Competitive Strategy
Available technology can
determine if you are profitable
or not
Information Technology can:
Give access to a world market
Improve product & service
quality
Aid communication between
employees
Reduce costs
Increase productivity
Improve company morale

3. 3
Leveraging Information Technology
Increasing sales
Increasing market share
Creating new business
Collecting data at the
source
Eliminating the
intermediary
Improving customer
service

4. 4
Information and Decision Making
Qualities of information
Completeness of
information
Timeliness of information
Relevance of information
Accessibility of
information

5. 5
Making Decisions to Produce Products and Services
Strategic Management
Tactical Management
Operational Management
Plan
Organiz
e
Lead
Control
Resources Functions
Products &
Services
Employees Managers Government Customers Stockholders
Financial
Institutions
Colleges/
Agencies
Media

6. 6
Types of Decisions
Programmed
decisions
Address well-defined
problems
Information-based
decisions
Unstructured decisions

7. 7
Who have succeeded
in making
the Right
Decisions?

8. 8Source: Interbrand, U.K.

9. 9
For
MARK BRANDING
Making the Right Decisions

10. 10
Branding for
BRAND
EQUITY
Building

11. 11
“Brand equity is ownership of a
competitively differentiating value
proposition.”
(David Aaker)

12. 12
Mark Branding = Corporate Branding
2 tiers: Core brand = Jose Rizal University
Value-brand = “We care about good education”
Other examples:
Microsoft: Your Potential, Our Passion*
Rockwell: The Address of Fashionable Manila*
MetroBank: You’re in Good Hands*
Cebu Pacific: Now, Every Juan Can Fly*
Smart: Simply Amazing*
Making the Right Decision for
Mark Branding?
So what are these value brands here? What about in your corporate branding?

13. 13
The 3-Tier Brand Strategy …
Stronger, Whiter Teeth, Fresher
Breath
Value-Branding
Core Branding
Mark Branding
"By Unilever Phils., the Total Quality Company"
"Close-Up"
… for an
ESTABLISHED
Brand

14. 14
The marketing function of each tier:*
1st tier: core branding.
To have a name that is different from all others in the category.
2nd tier: value-branding.
To express in a phrase the brand’s position the priority
consumer values which it promises to deliver better than
competition.
3rd tier: mark branding.
To legitimate the brand in terms of its maker’s reputation or
corporate image.
The 3-Tier Branding Strategy: Summary

15. 15
Sensory Signitures of
BRAND EQUITY:
How Do You
Design?

16. 16
“How do you express your
brand’s underlying
meaning? What look, feel,
sensibility
can capture that
meaning?”*
Calder’s Brand Design Model

17. 17
The 1st & 2nd Ds: Sight & Sound
The 5-D Strategy for Starbucks …
Sense of sight:
Lighting = “subdued to keep it cozy.”
Action by the counter = “clearly visible & provides
visual entertainment.”
Sense of sound:
Music = “soothing and sophisticated, merging into
the background to create the right ambience.”

18. 18
The 3rd & 4th Ds: Touch & Smell
The 5-D Strategy for Starbucks …
Sense of touch:
The chairs = “a little scuffed to make them feel comfy and
homely, and less intimidating than lots of stainless steel.”
Sense of smell:
Coffee aroma = “enticing, permeating the entire place,
creating anticipation of the rich roasted taste.”
Tea aroma = “the Tazo tea, with unique flavors that
revitalize the soul.”

19. 19
The 5th D = Taste
The 5-D Strategy for Starbucks …
Sense of taste:
Coffee taste = “Our unique and proprietary
coffee brewing method and roasting technique
have given our coffee its envigorating effects,
and its rich, satisfying flavor.”

20. 20
The 5-D Strategy for Starbucks
Results:
Over 7,000 stores around the world.
Recognized as one of the “Most Trusted Brands” by
Ad Week in 2003.
Ranked 8th on Brandweek’s “Super Brands List.”
Average customer visits per store = 18x a month.
Average customer spent per store = $60/month.

21. 21
“Can we apply the
5-D model in
expressing the
meaning of any
brand?*
Lindstrom’s 5-D Model:
Extendability

22. 22
How to Research?
“Create an inventory of the sensory
impressions for a brand, highlighting how
strongly the impressions came to mind.”
So ask a brand consumer to draw up the
brand’s “sensory profile” by rating the brand’s
sensory impressions in the 5 senses.
Then plot these 5 sensory impressions in the
Brand Sensogram.

23. 23
Sample Research Results: Averages
Example: Pepsi vs Coca-Cola:
Avg Rating* on: Pepsi Coke
Taste impression 2.8 3.5
Smell impression 1.4 1.7
Touch impression 0.9 1.8
Sight impression 1.4 2.6
Sound impression 1.1 1.4
*Rating along a 4-point scale with 4 = very strong and 1 = very weak.

24. 24
Decisions Support Systems
DSS are interactive
information systems
DSS rely on an integrated
set of user-friendly
hardware and software
tools
These tools produce
information to support
management in the
decision-making process

25. 25
Characteristics of DSS
Helps decision maker
Semistructured & unstructured
problems
Most effective for tactical &
strategic management levels
Interactive and user-friendly
Uses models, simulations, &
analytical tools
Readily adaptable to any decision
environment
Interacts with a corporate
database
Not used for pre-established
production schedule

26. 26
The DSS Tool Box
Data Management
Data warehousing
Data mining
Modeling
Decisions involve many
factors
Uncertainty and risk present
Statistical Analysis
Risk analysis
Trend analysis
Applications Development
Throwaway systems
Support a one-time decision
Planning
What-if
Goal seeking
Inquiry
Graphics
Consolidations
Application-specific

27. 27
The DSS Versus the MIS
MIS supports structured
problems
DSS supports
semistructured and
unstructured problems
MIS is designed and
created to support a set
of applications
DSS can be adapted to
any decision environment