41,551 research outputs found
Designing IS service strategy: an information acceleration approach
Information technology-based innovation involves considerable risk that requires insight and foresight. Yet, our understanding of how managers develop the insight to support new breakthrough applications is limited and remains obscured by high levels of technical and market uncertainty. This paper applies a new experimental method based on “discrete choice analysis” and “information acceleration” to directly examine how decisions are made in a way that is behaviourally sound. The method is highly applicable to information systems researchers because it provides relative importance measures on a common scale, greater control over alternate explanations and stronger evidence of causality. The practical implications are that information acceleration reduces the levels of uncertainty and generates a more accurate rationale for IS service strategy decisions
Should Optimal Designers Worry About Consideration?
Consideration set formation using non-compensatory screening rules is a vital
component of real purchasing decisions with decades of experimental validation.
Marketers have recently developed statistical methods that can estimate
quantitative choice models that include consideration set formation via
non-compensatory screening rules. But is capturing consideration within models
of choice important for design? This paper reports on a simulation study of a
vehicle portfolio design when households screen over vehicle body style built
to explore the importance of capturing consideration rules for optimal
designers. We generate synthetic market share data, fit a variety of discrete
choice models to the data, and then optimize design decisions using the
estimated models. Model predictive power, design "error", and profitability
relative to ideal profits are compared as the amount of market data available
increases. We find that even when estimated compensatory models provide
relatively good predictive accuracy, they can lead to sub-optimal design
decisions when the population uses consideration behavior; convergence of
compensatory models to non-compensatory behavior is likely to require
unrealistic amounts of data; and modeling heterogeneity in non-compensatory
screening is more valuable than heterogeneity in compensatory trade-offs. This
supports the claim that designers should carefully identify consideration
behaviors before optimizing product portfolios. We also find that higher model
predictive power does not necessarily imply better design decisions; that is,
different model forms can provide "descriptive" rather than "predictive"
information that is useful for design.Comment: 5 figures, 26 pages. In Press at ASME Journal of Mechanical Design
(as of 3/17/15
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