8116 - STRATEGIC BUSINESS MODELLING

Strategic decisions are related to the external and internal business conditions: many variables are behind those decisions, all of them part of a complex and dynamic system of relationships. Using a flexible approach to structuring strategic decisions, the course aims to improve strategic thinking and to increase strategic analysis and formulation skills, both from a competitive and a firm point of view. The managerial ability to reduce the amount of uncertainty of strategic decisions is related to their skills in developing and using tools and models, which are able to encompass the essential aspects of those systems and to provide useful knowledge needed to make such decisions.
During the course examples, business cases and testimonials are shown and some group work is also realized. This allows students to directly focus on the course topics. The course uses interactive methods, aimed to transmit professional skills, abilities and attitudes which are useful in increasing the effectiveness of the learning process, team working, conflict-reducing abilities and leadership.

The course is articulated in five steps:

• The role of models in strategy formulation processes

Strategy formulation is related to environmental complexity, both internal and external. This complexity influences the decision making process, not only in finding acceptable strategic alternatives, but also in defining problems.

• The model identification phase

The model identification phase involves: starting from the problem structuring phase to developing a model.

• Modelling strategic business decisions

The goal of this step of the course is to provide participants with the fundamental competencies to apply quantitative tools to strategic decisions and fully understand the use of model sensitivity tools in business model optimization.

• Business processes modelling

Many successful strategies are crafted instead of being planned. People with adaptive abilities and can easily learn from experience. Strategy formulation is a concrete activity and it does not depend on specific business moments. On the contrary, it is an activity which is strongly rooted in the normal day-by-day business processes.

• Simulation models

The fifth step of the course focuses on developing simulation models and on their specific relationships with the strategy formulation process. Some characteristics of strategic decisions are shown in further detail through the use of business cases.

Attending students
Student evaluation consists of:

• Final written exam: 60%.
• Class participation: 20% (active participation in lessons, testimonials and business case discussions; number and quality of summaries of readings provided during the course; attendance - at each session the signatures of participants will be collected).
• Group work: 20% (business case discussions and real case presentations).

Non-attending students
Final written exam.

Attending students

• L. GNAN, I modelli nella formulazione della strategia d'impresa, Milano, EGEA, 2003.
• S.C. ALBRIGHT, W.L. WINSTON, C.S. ZAPPE, Data Analysis & Decision Making, Thomson Brooks/Cole, 2003.
• L. GNAN, Stress da cambiamento strategico: smettiamo di modellare, sperimentiamo!, 2005.
• Quaderni di management, gennaio-febbraio.

Non-attendings students

• L. GNAN, I modelli nella formulazione della Strategia d'impresa, Milano, EGEA, 2003.
• S.C. ALBRIGHT, W.L. WINSTON, C.S. ZAPPE, Data Analysis & Decision Making, Thomson Brooks/Cole, 2003.
• L. GNAN, Stress da cambiamento strategico: smettiamo di modellare, sperimentiamo!, Quaderni di management, gennaio-febbraio, 2003.
• Course material folder prepared by L. GNAN.
• P.M. SENGE, The Fifth Discipline, London, Century Business, 1992.