Designing decision support systems for value-based management: A survey and an architecture

Value-based Management (VBM) concepts are prevalent in theory and practice since shareholder value creation is commonly considered the paramount business goal. However, VBM mainly applies data-driven concepts to support decision-making, disregarding model-driven approaches. This paper develops a comprehensive approach to designing model-driven DSS for VBM. First, we derive a conceptual architecture for Integrated Business Planning (IBP) as the foundation for a model-driven approach to VBM. Second, we present a unified modeling approach for value-based performance and risk optimization that implements Value Added (xVA) performance metrics and applies robust optimization methods to mitigate risk impact.

► A comprehensive approach to designing DSS for value-based management is presented.
► A conceptual architecture for value-based integrated business planning is described.
► A modeling approach for value-based performance and risk optimization is developed.
► Research perspectives for model-driven integrated business planning are derived.