Simplified approaches for portfolio decision analysis

Traditional choice decisions involve selecting a single, best alternative from a larger set of potential options. In contrast, portfolio decisions involve selecting the best subset of alternatives — alternatives that together maximize some measure of value to the decision maker and are within their available resources to implement. Examples include capital investment, R&D project selection, and maintenance planning. Portfolio decisions involve a combinatorial aspect that makes them more theoretically and computationally challenging than choice problems, particularly when there are interactions between alternatives. Several portfolio decision analysis methods have been developed over the years and an increasing interest has been noted in the field of portfolio decision analysis. These methods are typically called “exact” methods, but can also be called prescriptive methods. These are generally computationally-intensive algorithms that require substantial amounts of information from the decision maker, and in return yield portfolios that are provably optimal or optimal within certain bounds. These methods have proved popular for choice decisions — for example, those based on multiattribute value or utility theory. But whereas information and computational requirements for choice problems are probably manageable for the majority of diligent decision makers, it is much less clear that this is true of portfolio decisions. That is, for portfolio decisions it may be more common that decision makers do not have the time, expertise and ability to exert the effort to assess all the information required of an exact method. Heuristics are simple, psychologically plausible rules for decision making that limit the amount of information required and the computation effort needed to turn this information into decisions. Previous work has shown that people often use heuristics when confronted with traditional choice problems in unfacilitated contexts, and that these can often return good results, in the sense of selecting alternatives that are also ranked highly by exact methods. This suggests that heuristics may also be useful for portfolio decisions. Moreover, while the lower information demands made by choice problems mean that heuristics have not generally been seen as prescriptive options, the more substantial demands made by portfolio decisions make a priori case for considering their use not just descriptively, but as tools for decision aid. Very little work exists on the use of heuristics for portfolio decision making, the subject of this thesis. Durbach et al. (2020) proposed a family of portfolio selection heuristics known collectively as add-the-best. These construct portfolios by adding, at every step, the alternative that is best in a greedy sense, with different definitions of what “best” is. This thesis extends knowledge on portfolio heuristics in three main respects. Firstly, we show that people use certain of the add-the-best heuristics when selecting portfolios without facilitation, in a context where there are interactions between alternatives. We run an experiment involving actual portfolio decision making behaviour, administered to participants who had the opportunity to choose as many alternatives as they wanted, but under the constraint of a limited budget. This experiment, parts of which were reported in Durbach et al. (2020), provides the first demonstration of the use of heuristics in portfolio selections. Secondly, we use a simulation experiment to test the performance of the heuristics in two novel environments: those involving multiple criteria, and those in which interactions between projects may be positive (the value of selecting two alternatives is more than the sum of their individual values) or negative (the opposite). This extends the results in Durbach et al. (2020), who considered only environments involving a single criterion and positive interactions between alternatives. In doing so we differentiate between heuristics that guide the selection of alternatives, called selection heuristics, and heuristics for aggregating performance across criteria, which we call scoring heuristics. We combine various selection and scoring heuristics and test their performance on a range of simulated decision problems. We found that certain portfolio heuristics continued to perform well in the presence of negative interactions and multiple criteria, and that performance depended more on the approach used to build portfolios (selection heuristics) than on the method of aggregation across criteria (scoring heuristics). We also found that in these extended conditions heuristics continued to provide outcomes that were competitive with optimal models, but that heuristics that ignored interactions led to potentially poor results. Finally, we complement behavioral and simulation experimental studies with an application of both exact methods and portfolio heuristics in a real-world portfolio decision problem involving the selection of the best subset of research proposals out of a pool of proposals submitted by researchers applying for grants from a research institution. We provide a decision support system to this institution in the form of a web-based application to assist with portfolio decisions involving interactions. The decision support system implements exact methods, namely the linear-additive portfolio value model and the robust portfolio model, as well as two portfolio heuristics found to perform well in simulations

Competences of IT Architects

The field of architecture in the digital world uses a plethora of terms to refer to different kinds of architects, and recognises a confusing variety of competences that these architects are required to have. Different service providers use different terms for similar architects and even if they use the same term, they may mean something different. This makes it hard for customers to know what competences an architect can be expected to have.\ud \ud This book combines competence profiles of the NGI Platform for IT Professionals, The Open Group Architecture Framework (TOGAF), as well as a number of Dutch IT service providers in a comprehensive framework. Using this framework, the book shows that notwithstanding a large variety in terminology, there is convergence towards a common set of competence profiles. In other words, when looking beyond terminological differences by using the framework, one sees that organizations recognize similar types of architects, and that similar architects in different organisations have similar competence profiles. The framework presented in this book thus provides an instrument to position architecture services as offered by IT service providers and as used by their customers.\ud \ud The framework and the competence profiles presented in this book are the main results of the special interest group “Professionalisation” of the Netherlands Architecture Forum for the Digital World (NAF). Members of this group, as well as students of the universities of Twente and Nijmegen have contributed to the research on which this book is based

Planning strategically, designing architecturally : a framework for digital library services

In an era of unprecedented technological innovation and evolving user expectations and information seeking behaviour, we are arguably now an online society, with digital services increasingly common and increasingly preferred. As a trusted information provider, libraries are in an advantageous position to respond, but this requires integrated strategic and enterprise architecture planning, for information technology (IT) has evolved from a support role to a strategic role, providing the core management systems, communication networks, and delivery channels of the modern library. Further, IT components do not function in isolation from one another, but are interdependent elements of distributed and multidimensional systems encompassing people, processes, and technologies, which must consider social, economic, legal, organisational, and ergonomic requirements and relationships, as well as being logically sound from a technical perspective. Strategic planning provides direction, while enterprise architecture strategically aligns and holistically integrates business and information system architectures. While challenging, such integrated planning should be regarded as an opportunity for the library to evolve as an enterprise in the digital age, or at minimum, to simply keep pace with societal change and alternative service providers. Without strategy, a library risks being directed by outside forces with independent motivations and inadequate understanding of its broader societal role. Without enterprise architecture, it risks technological disparity, redundancy, and obsolescence. Adopting an interdisciplinary approach, this conceptual paper provides an integrated framework for strategic and architectural planning of digital library services. The concept of the library as an enterprise is also introduced

A typology of technology market intermediaries

Technology Market Intermediaries (TMI) are currently emerging on the markets for technologies attempting to realize business opportunities and facilitate the technology and IP transactions supporting firms and other markets actors (e.g. universities). They aim to support open innovation, respectively facilitate more economically technology and particularly IP transactions. However, our understanding of TMIs and their roles needs to be considered incomplete. In this paper I provide evidence on the growing number of TMIs and derived a conceptual basis for a further understanding of TMIs. The inherent difficulties of intellectual property monetization present a challenge for technology based enterprises and business opportunities for IP firms. Following a literature review, I develop a typology for TMIs. Having carried out a review of the literature I compiled a mix of primary and secondary data on about 70 TMIs. Applying the 'nine business model building blocks' from Osterwalder (2004) I identify 12 different TMI types which I then consolidate into six TMI archetypes using the framework for 'business models archetypes' of Herman and Malone (2003). --typology,type,Technology Market Intermediaries

Cross-divisional innovation in large, multi-divisional firms: Economic relevance and managerial actions

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Corporate brand architecture in cross-border mergers and acquisitions

Crossborder merger and acquisition (CBM&A) is a dynamic and sustainable competitive strategy. However, the related issue of corporate brand architecture (CBA) has been emphasized to a limited extent in the last five decades of CBM&A studies. Consequently, this research endeavors to scrutinize the antecedents and performance of functionally effective CBA standardization in the postCBM&A phase. This study develops a theoretical framework based on the ResourceBased View and Industrial Organization theory in view of the StructureConductPerformance model. A web survey was conducted based on 124 acquiring companies in 29 countries that were engaged in CBM&A deals between 1990 and 2014. The PLSSEM method was applied to analyze the survey data using SmartPLS professional version 3. The empirical findings show that the firm’s intangible and strategic resources – such as the acquirer’s stronger brand management system, corporate reputation, corporate brand power and acquisition motives (i.e., global presence and extension of sales opportunities) – lead to a high degree of CBA standardization, while the stronger customerbased equity of the target yields a low degree of such standardization. Also, market orientation has a positive impact on the brand management system. Market factors such as the micro and macro environmental distance lead to a high degree of CBA standardization, while the acquirer’s country brand equity indirectly influences the high degree of CBA standardization through brand management system and corporate reputation. Remarkably, competitive intensity has no effect on CBA standardization. Moreover, a high degree of CBA standardization yields superior financial performance indirectly through synergistic competitive advantage and market performance in postCBM&A. Particularly, market performance has a substantial direct effect on financial performance compared to synergistic competitive advantage. This study suggests that the acquirer’s executives should sequentially apply firm and marketlevel factors such as brand management system, corporate reputation, corporate brand power, low customerbased equity of the target, micro and macro environmental distance, country brand equity, and acquisition motives to achieve an optimum degree of CBA standardization in postCBM&A. Similarly, the synergistic competitive advantage and market performance should be regarded sequentially as well to achieve superior financial performance in terms of the degree of CBA standardization. It is deemed that the findings as a whole establish a framework for the practice of corporate brand architecture in postCBM&A.Kansainvälinen fuusio ja yritysosto (CBM&A) on dynaaminen ja kestävä kilpailustrategia. Siihen liittyvää kysymystä yrityksen brändiarkkitehtuurista (CBA) ei kuitenkaan ole painotettu riittävästi CBM&A:ta koskevassa tutkimuksessa viimeisten viiden vuosikymmenen aikana. Tämä väitöstutkimus pyrkiikin selvittämään brändiarkkitehtuurin tehokkaan standardoinnin lähtökohtia ja tuloksia fuusion tai yrityskaupan jälkeisessä tilanteessa. Tutkimuksessa kehitetään resurssiperustaiseen näkemykseen (RVB) ja teollisen organisaation (IO) teoriaan pohjautuva teoreettinen viitekehys yrityksen kilpailutilannetta arvioivan SCPmallin (StructureConductPerformance) näkökulmasta. Tutkimus toteutettiin tekemällä verkkokysely 124:lle yritysjärjestelyissä vuosien 1990–2014 aikana mukana olleelle yritykselle 29 maassa. Tulokset analysoitiin käyttämällä osittaisten pienimpien neliösummien ja rakenneyhtälömallinnusta (PLSSEM) SmartPLS professional ohjelmiston versiolla 3. Empiirisen tulokset osoittavat, että yrityksen resurssit, kuten esimerkiksi ostajan vahvemmat brändijohtamisjärjestelmät, yrityksen maine, yrityksen brändin voima ja ostomotiivit – vaikuttavat positiivisesti brändiarkkitehtuurin korkeaan standardointiasteeseen. Toisaalta ostokohteen vahvempi asiakaslähtöinen brändin pääoma johtaa matalampaan standardointiasteeseen. Myös markkina¬orientoituneisuudella on positiivinen vaikutus brändin johtamisjärjestelmiin. Markkinatekijöillä kuten myyjän ja ostokohteen mikro ja makroympäristöjen etäisyydellä on positiivinen vaikutus brändiarkkitehtuurin standardointiin. Tästä huolimatta ostajan maan brändipääoma vaikuttaa epäsuorasti standardoinnin asteeseen brändijohtamisjärjestelmien ja yrityksen maineen kautta. Yllättävää kyllä, kilpailuintensiteetillä ei ollut vaikutusta standardointiin. Tämän lisäksi korkea standardointiaste johtaa epäsuorasti synergististen kilpailuetujen ja yrityksen markkinoilla menestymisen kautta parempaan taloudelliseen tulokseen yritysjärjestelyn jälkeisessä tilanteessa. Erityisesti markkkinoilla menestymisellä on tuntuva suora vaikutus taloudelliseen tulokseen synergistiseen kilpailuetuun verrattuna. Tämän tutkimuksen mukaan ostajan johtajien tulisi järjestelmällisesti käyttää yritys ja markkinatason tekijöitä kuten brändin johtamisjärjestelmiä, yrityksen mainetta, yrityksen brändivoimaa, ostokohteen matalaa asiakaslähtöistä brändipääomaa, mikro ja makroympäristön etäisyyttä, maan brändipääomaa ja ostomotiiveita päästäkseen tehokkaaseen brändiarkkitehtuurin standardisointiin yritysoston tai fuusion jälkeisessä tilanteessa. Samalla tavoin synergististä kilpailuetua ja markkinatulosta tulisi tarkastella säännöllisesti, jotta brändiarkkitehtuurin standardisoinnin kautta voitaisiin saavuttaa taloudellista menestystä. Kokonaisuudessaan tulokset muodostavat viitekehyksen yritysoston tai fuusion jälkeiselle brändiarkkitehtuurin soveltamiselle.fi=vertaisarvioitu|en=peerReviewed

An ontology-based model management architecture for service innovation

Organizations have indicated renewed interest in service innovation, design and management, given the growth of service sector. Decision support systems (DSS) play an important role in supporting this endeavor, through management of organizational resources such as data and models. Given the global nature of service value chains, there have been ever increasing demands on managing, sharing, and reusing these heterogeneous and distributed resources, both within and across organizational boundaries, through DSS consisting of database management systems (DBMS) and model management systems (MMS). Analogous to DBMS, model management systems focus on the management of decision models, dealing with representation, storage, and retrieval of models as well as a variety of applications such as analysis, reuse, sharing, and composition of models. Recent developments in the areas of semantic web and ontologies have provided a rich tool set for computational reasoning about these resources in an intelligent manner. In this chapter, we leverage these advances and apply service-oriented design principles to propose an ontology-based model management architecture supporting service innovation. The architecture is illustrated with case study scenarios and current state of implementation. The role of potential information technologies in supporting the architecture is also discussed. We then provide a roadmap to make advancements in research in this direction