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Enhancing Decision Making

[Decision Support System]
Information Technology in Perspective, 11e

DSS
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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

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Leveraging Information Technology



Increasing sales
Increasing market share
Creating new business
Collecting data at the
source
Eliminating the
intermediary
Improving customer
service
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Information and Decision Making



Qualities of information
Completeness of
information
Timeliness of information
Relevance of information
Accessibility of
information

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Making Decisions to Produce Products and Services
Plan
Organize
Lead
Control

Strategic Management
Tactical Management
Operational Management

Resources
Resources

Employees

Managers

Products
Products
&&
Services
Services

Functions
Functions

Government

Customers

Stockholders

Financial
Institutions

Colleges/
Agencies

Media
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Types of Decisions

Programmed
decisions
 Address

well-defined
problems

Information-based
decisions
 Unstructured

decisions

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Who have
succeeded in
making
the Right
Decisions?
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Source: Interbrand, U.K.

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Making the Right
Decisions

For
MARK BRANDING

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Branding for

BRAND
EQUITY
Building

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

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Making the Right Decision for
Mark Branding?
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*

So what are these value brands here? What about in your corporate branding?
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The 3-Tier Brand Strategy
…… for an
ESTABLISHED
Brand

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The 3-Tier Branding Strategy: Summary

The marketing function of each tier:*

1st tier: core branding.

2nd tier: value-branding.

To have a name that is different from all others in the
category.
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.
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Sensory
Signitures of

BRAND EQUITY:
How Do You Design?
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Calder’s Brand Design Model

“How do you express your
brand’s underlying
meaning? What look, feel,
sensibility
can capture that
meaning?”*

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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.”
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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.”
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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.”
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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.

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

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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.
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Sample Research Results:
Averages

Example: Pepsi vs Coca-Cola:
Avg Rating* on:
Pepsi
Taste impression
2.8
Smell impression
1.4
Touch impression
0.9
Sight impression
1.4
Sound impression
1.1

Coke
3.5
1.7
1.8
2.6
1.4

*Rating along a 4-point scale with 4 = very strong and 1 = very weak.
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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

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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

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The DSS Tool Box

Data Management

Data warehousing
 Data mining

Throwaway systems
 Support a one-time decision

Modeling
Decisions involve many
factors
 Uncertainty and risk present

Statistical Analysis

Risk analysis
 Trend analysis

Planning
What-if
 Goal seeking

Applications Development

Inquiry
Graphics
Consolidations
Application-specific

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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

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