Justino, M.R.T.F.; Texeira-Quirós, J.; Gonçalves, A.J.; Antunes, M.G.; Mucharreira, P.R. The Role of Artificial Neural Networks (ANNs) in Supporting Strategic Management Decisions. J. Risk Financial Manag.2024, 17, 164.
Justino, M.R.T.F.; Texeira-Quirós, J.; Gonçalves, A.J.; Antunes, M.G.; Mucharreira, P.R. The Role of Artificial Neural Networks (ANNs) in Supporting Strategic Management Decisions. J. Risk Financial Manag. 2024, 17, 164.
Justino, M.R.T.F.; Texeira-Quirós, J.; Gonçalves, A.J.; Antunes, M.G.; Mucharreira, P.R. The Role of Artificial Neural Networks (ANNs) in Supporting Strategic Management Decisions. J. Risk Financial Manag.2024, 17, 164.
Justino, M.R.T.F.; Texeira-Quirós, J.; Gonçalves, A.J.; Antunes, M.G.; Mucharreira, P.R. The Role of Artificial Neural Networks (ANNs) in Supporting Strategic Management Decisions. J. Risk Financial Manag. 2024, 17, 164.
Abstract
Nowadays the dynamism induced by the constant change of strategic decisions on the markets produces an extra difficulty in the management of an organization. The strategic decisions made by managers can become obsolete in a short period of time. One of the major difficulties in managing a commercial organization is to predict, with some precision degree, the impact some strategic decisions have on the financial results. Business Intelligence (BI) is an area widely used to help managers to make strategic decisions. But the methods used, behind the scenes, to achieve the conclusions are kept secret by BI company-based services. Modelling the environment can be a good option to study the impact of an action, provided by a strategic decision, in a real environment. A good model should give an approximate result of an action applied to a previous state of the environment. Artificial Neural Networks (ANNs) are proven to be excellent in modeling environments with some level of data noise. The same strategic action can have different results in different organizations. A tool that allows an evaluation of a strategic action applied to an environment should have a major importance in the management scope. Modeling the environment should save time and money for the organization to improve the performance of the strategic plan. If one evaluates the state of the environment after a strategic action being applied, it can be possible to mitigate the risk of failure of the strategic plan. As we will be able to verify, it is possible to use ANNs to model strategic environments that should allow the prediction of sales and operating results by the used strategies with some precision, although the level of success will be directly related with the user’s necessity.
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
,
