Support tools for strategic-level decision-making have become increasingly popular. This study in... more Support tools for strategic-level decision-making have become increasingly popular. This study investigates the role of OR/MS tools in today’s strategic-level decision support tool market. Executives working in Finland’s 500 largest companies were asked about the decision support tools they use when making major decisions. The responses received indicated that executives actively use a variety of tools, and an average of
This study investigates the influence of a decision aid on decision makers ’ model-based choices,... more This study investigates the influence of a decision aid on decision makers ’ model-based choices, emotions during the use of the model, and attitudes towards the model. A time allocation decision model was biased to purposefully provide optimistic or pessimistic criterion levels, on which subjects based their allocations. The results of our experiment indicate that the degree of ‘‘optimism’ ’ and ‘‘pessimism’ ’ inherent in the decision model had a significant impact on the decision maker’s choices of criterion values, with optimism leading to higher criterion level choices and pessimism to lower levels. Furthermore, compared to pessimistic models, optimistic models significantly improved the decision makers ’ emotional states and, to some degree, their attitudes towards the decision aid. The implications of these conscious and sub-conscious influences on decision makers ’ choices, emotions, and attitudes are discussed and the need for model-builders and users to be aware of them is ...
All rights reserved. This study may not be reproduced in whole or in part without the authors &ap... more All rights reserved. This study may not be reproduced in whole or in part without the authors ' permission. 1 Radial projection is a standard technique applied in Data Envelopment Analysis (DEA) to calculate efficiency scores for input and/or output variables. In this paper, we have studied the appropriateness of radial projection for target setting. We have created a situation where the Decision Making Units (DMUs) are free to choose their own target values on the efficient frontier and then compared the results to those of radial projection. In practice, target values are primarily used for future goal attainment; hence, not only preferences but also, and on the whole, change in time frame, affect the choice of target values. Based on that, we conducted an empirical experiment with an aim to study how the DMUs choose their most preferred target values on the efficient frontier. The subjects, who all were students of the Helsinki School of Economics, were given the freedom to ...
Decision support tools that are used to support major decisions in companies have become increasi... more Decision support tools that are used to support major decisions in companies have become increasingly popular. This study investigates the role of decision support tools in high-level corporate decision-making. Executives working in Finland’s 500 largest companies were asked about the decision support tools they use when making major decisions. The responses received indicated that executives actively use a variety of tools, with an average of five different tools per company. The main finding of the study is that executives mainly use support tools for the purposes of improving efficiency not for the purposes of enhancing creativity. Furthermore, innovation and creativity are key ingredients in creating and sustaining strategic advantage, yet not many tools, used for major decisions are specifically designed to support creativity and innovation. Tools which support creativity and innovation are needed.
Our society is moving into the 2020s in a situation where we are making more efficient use of ser... more Our society is moving into the 2020s in a situation where we are making more efficient use of services enabled by new technology to develop new services and business models in society and in business life. The 2020s is predicted to be a decade characterised by the clear breakthrough of artificial intelligence and robotisation in the same way as social media, cloud computing, smart phones, location and time independent working and digital services did in the 2010s. Finland has performed extremely well in international statistics in several fields of society. Finland's stability and security combined with high technology utilisation rate and education level provides an excellent platform for the creation and development of digital business. At the core of this development are citizens, businesses and data. The development of data policy and data management in a way that takes the different life situations of citizens into account is a unique innovation by global standards, and one...
We conducted an executive level survey in the 500 largest companies in Finland. In general, the a... more We conducted an executive level survey in the 500 largest companies in Finland. In general, the adaptation of leading edge technology in Finland is high. We analyzed systematic support tools that were used for strategic decisions. Two hundred seventy five executives described their used of strategy support. The most used tool types were: SWOT-analysis, spreadsheet applications, Balanced Scorecard, risk analysis, and analysis of financial statements or investments. On average, the companies used 5 tools in their strategy process, and only 0.5 were traditional OR tools. Size of the company and industry class had impact on tool usage. Only one-third of the companies used traditional OR tools. OR tools were used mainly in large companies for certain functions and certain industries. In strategy level, ability to form a functional strategic advantage for a company is the strongest feature of traditional OR methods. Softer OR methods were not used. Highly competitive strategy support mark...
ABSTRACT Paper published in the series of Helsinki School of Economics Working Papers W-419, Marc... more ABSTRACT Paper published in the series of Helsinki School of Economics Working Papers W-419, March 2007.
International Journal of Community Well-Being, Jan 7, 2020
We are calling for a new area of research on the nexus of community well-being and artificial int... more We are calling for a new area of research on the nexus of community well-being and artificial intelligence (AI). Three components of this research we propose are (1) the development and use of well-being metrics to measure the impacts of AI; (2) the use of community-based approaches in the development of AI; and (3) development of AI interventions to safeguard or improve community well-being. After providing definitions of community, well-being, and community well-being, we suggest a definition of AI for use by community well-being researchers, with brief explanations of types and uses of AI within this context. A brief summary of threats and opportunities facing community well-being for which AI could potentially present solutions or exacerbate problems is provided. The three components we propose are then discussed, followed by our call for cross-sector, interdisciplinary, transdisciplinary and systems-based approaches for the formation of this proposed area of research.
Support tools for strategic-level decision-making have become increasingly popular. This study in... more Support tools for strategic-level decision-making have become increasingly popular. This study investigates the role of OR/MS tools in today's strategic-level decision support tool market. Executives working in Finland's 500 largest companies were asked about the decision support tools they use when making major decisions. The responses received indicated that executives actively use a variety of tools, and an average of five different strategic-level tools. Approximately 10% of the tools used could be identified as OR/MS type, these often suit the needs of larger companies with strategic logistical or production functions and compared to other tools, have a specific profile. Executives see advantages in using tools that provide cognitive, collaboration and communication possibilities, and also in using tools that make processes more efficient. OR methodologies have influenced some of the other tools on the market, but 'soft OR' tool usage could not be identified. Tools which support creativity are needed.
Strategic level management tools -strategy tools -have generated much interest in organizations a... more Strategic level management tools -strategy tools -have generated much interest in organizations as potential ways of supporting modern strategizing. Strategy tools such as Porter' s five forces, SWOT Analysis, Scenario Analysis, and the Balanced Scorecard are designed to support organizations in dealing with the complex demands of competitive markets and the quest for maintaining and creating strategic advantage. While hundreds of different strategy tools are available, increasingly in computerized form, reports concerning their usefulness remain ambiguous. This paper takes a new approach to evaluating strategy tools by focusing on strategizing activities. In other words, instead of concentrating on outcome expectations and the tools' prescribed tasks, we look at how the tools are actually used. We argue that the usefulness of strategy tools should be conceptualized as a form of activity, and that such a framework allows us to evaluate, explain and expect different experiences and consequences of strategy tool use in organizations. In addition to contributing to evaluation literature, our paper also adds to neo-institutional management tool discussions by connecting institutional forces to micro-level activities. Our practical contribution is to facilitate and draw attention to the process of choosing strategy tools.
Support tools for strategic-level decision-making have become increasingly popular. This study in... more Support tools for strategic-level decision-making have become increasingly popular. This study investigates the role of OR/MS tools in today’s strategic-level decision support tool market. Executives working in Finland’s 500 largest companies were asked about the decision support tools they use when making major decisions. The responses received indicated that executives actively use a variety of tools, and an average of
This study investigates the influence of a decision aid on decision makers ’ model-based choices,... more This study investigates the influence of a decision aid on decision makers ’ model-based choices, emotions during the use of the model, and attitudes towards the model. A time allocation decision model was biased to purposefully provide optimistic or pessimistic criterion levels, on which subjects based their allocations. The results of our experiment indicate that the degree of ‘‘optimism’ ’ and ‘‘pessimism’ ’ inherent in the decision model had a significant impact on the decision maker’s choices of criterion values, with optimism leading to higher criterion level choices and pessimism to lower levels. Furthermore, compared to pessimistic models, optimistic models significantly improved the decision makers ’ emotional states and, to some degree, their attitudes towards the decision aid. The implications of these conscious and sub-conscious influences on decision makers ’ choices, emotions, and attitudes are discussed and the need for model-builders and users to be aware of them is ...
All rights reserved. This study may not be reproduced in whole or in part without the authors &ap... more All rights reserved. This study may not be reproduced in whole or in part without the authors ' permission. 1 Radial projection is a standard technique applied in Data Envelopment Analysis (DEA) to calculate efficiency scores for input and/or output variables. In this paper, we have studied the appropriateness of radial projection for target setting. We have created a situation where the Decision Making Units (DMUs) are free to choose their own target values on the efficient frontier and then compared the results to those of radial projection. In practice, target values are primarily used for future goal attainment; hence, not only preferences but also, and on the whole, change in time frame, affect the choice of target values. Based on that, we conducted an empirical experiment with an aim to study how the DMUs choose their most preferred target values on the efficient frontier. The subjects, who all were students of the Helsinki School of Economics, were given the freedom to ...
Decision support tools that are used to support major decisions in companies have become increasi... more Decision support tools that are used to support major decisions in companies have become increasingly popular. This study investigates the role of decision support tools in high-level corporate decision-making. Executives working in Finland’s 500 largest companies were asked about the decision support tools they use when making major decisions. The responses received indicated that executives actively use a variety of tools, with an average of five different tools per company. The main finding of the study is that executives mainly use support tools for the purposes of improving efficiency not for the purposes of enhancing creativity. Furthermore, innovation and creativity are key ingredients in creating and sustaining strategic advantage, yet not many tools, used for major decisions are specifically designed to support creativity and innovation. Tools which support creativity and innovation are needed.
Our society is moving into the 2020s in a situation where we are making more efficient use of ser... more Our society is moving into the 2020s in a situation where we are making more efficient use of services enabled by new technology to develop new services and business models in society and in business life. The 2020s is predicted to be a decade characterised by the clear breakthrough of artificial intelligence and robotisation in the same way as social media, cloud computing, smart phones, location and time independent working and digital services did in the 2010s. Finland has performed extremely well in international statistics in several fields of society. Finland's stability and security combined with high technology utilisation rate and education level provides an excellent platform for the creation and development of digital business. At the core of this development are citizens, businesses and data. The development of data policy and data management in a way that takes the different life situations of citizens into account is a unique innovation by global standards, and one...
We conducted an executive level survey in the 500 largest companies in Finland. In general, the a... more We conducted an executive level survey in the 500 largest companies in Finland. In general, the adaptation of leading edge technology in Finland is high. We analyzed systematic support tools that were used for strategic decisions. Two hundred seventy five executives described their used of strategy support. The most used tool types were: SWOT-analysis, spreadsheet applications, Balanced Scorecard, risk analysis, and analysis of financial statements or investments. On average, the companies used 5 tools in their strategy process, and only 0.5 were traditional OR tools. Size of the company and industry class had impact on tool usage. Only one-third of the companies used traditional OR tools. OR tools were used mainly in large companies for certain functions and certain industries. In strategy level, ability to form a functional strategic advantage for a company is the strongest feature of traditional OR methods. Softer OR methods were not used. Highly competitive strategy support mark...
ABSTRACT Paper published in the series of Helsinki School of Economics Working Papers W-419, Marc... more ABSTRACT Paper published in the series of Helsinki School of Economics Working Papers W-419, March 2007.
International Journal of Community Well-Being, Jan 7, 2020
We are calling for a new area of research on the nexus of community well-being and artificial int... more We are calling for a new area of research on the nexus of community well-being and artificial intelligence (AI). Three components of this research we propose are (1) the development and use of well-being metrics to measure the impacts of AI; (2) the use of community-based approaches in the development of AI; and (3) development of AI interventions to safeguard or improve community well-being. After providing definitions of community, well-being, and community well-being, we suggest a definition of AI for use by community well-being researchers, with brief explanations of types and uses of AI within this context. A brief summary of threats and opportunities facing community well-being for which AI could potentially present solutions or exacerbate problems is provided. The three components we propose are then discussed, followed by our call for cross-sector, interdisciplinary, transdisciplinary and systems-based approaches for the formation of this proposed area of research.
Support tools for strategic-level decision-making have become increasingly popular. This study in... more Support tools for strategic-level decision-making have become increasingly popular. This study investigates the role of OR/MS tools in today's strategic-level decision support tool market. Executives working in Finland's 500 largest companies were asked about the decision support tools they use when making major decisions. The responses received indicated that executives actively use a variety of tools, and an average of five different strategic-level tools. Approximately 10% of the tools used could be identified as OR/MS type, these often suit the needs of larger companies with strategic logistical or production functions and compared to other tools, have a specific profile. Executives see advantages in using tools that provide cognitive, collaboration and communication possibilities, and also in using tools that make processes more efficient. OR methodologies have influenced some of the other tools on the market, but 'soft OR' tool usage could not be identified. Tools which support creativity are needed.
Strategic level management tools -strategy tools -have generated much interest in organizations a... more Strategic level management tools -strategy tools -have generated much interest in organizations as potential ways of supporting modern strategizing. Strategy tools such as Porter' s five forces, SWOT Analysis, Scenario Analysis, and the Balanced Scorecard are designed to support organizations in dealing with the complex demands of competitive markets and the quest for maintaining and creating strategic advantage. While hundreds of different strategy tools are available, increasingly in computerized form, reports concerning their usefulness remain ambiguous. This paper takes a new approach to evaluating strategy tools by focusing on strategizing activities. In other words, instead of concentrating on outcome expectations and the tools' prescribed tasks, we look at how the tools are actually used. We argue that the usefulness of strategy tools should be conceptualized as a form of activity, and that such a framework allows us to evaluate, explain and expect different experiences and consequences of strategy tool use in organizations. In addition to contributing to evaluation literature, our paper also adds to neo-institutional management tool discussions by connecting institutional forces to micro-level activities. Our practical contribution is to facilitate and draw attention to the process of choosing strategy tools.
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Papers by Sari Stenfors