ABSTRACT: In this paper we propose REA ontology‐based simulation models to facilitate firms' strategic planning processes. Managers often must assess complex business environments, changing competitive forces, and uncertain futures, and then make significant resource allocation decisions. Traditional quantitative planning and budgeting techniques often fail to consider nonlinear relationships, discontinuities, and uncertainty. Qualitative techniques can lack rigor and perpetuate biases. Using simulation modeling technology could specifically address those concerns, but there are few if any general simulation models of integrated business processes to support strategic planning processes. Basing simulation models for enterprise planning on the REA framework, an established enterprise domain ontology, would facilitate reuse of and learning from these models in a variety of business contexts. An ontology‐based planning model would allow managers to assess the consequences of alternative resource allocation decisions and determine appropriate performance indicators. To illustrate the concepts, we provide an example of how that model could be used to facilitate management planning.
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Fall 2008
Research Article|
September 01 2008
REA Ontology‐Based Simulation Models for Enterprise Strategic Planning
Rod Smith
Rod Smith
California State University, Long Beach
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Online ISSN: 1558-7959
Print ISSN: 0888-7985
American Accounting Association
2008
Journal of Information Systems (2008) 22 (2): 301–329.
Citation
Kim Church, Rod Smith; REA Ontology‐Based Simulation Models for Enterprise Strategic Planning. Journal of Information Systems 1 September 2008; 22 (2): 301–329. https://doi.org/10.2308/jis.2008.22.2.301
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