A Target-Costing Based Strategic Decision Support System.

Most Strategic Decision Support Systems (SDSSs) are general DSS in nature. Very few SDSS have been designed specifically based on particular competitive strategies. In this paper, we present an SDSS that is designed based on a market-driven target costing (TC) strategy. We present both the structure and subsystems of the TC-based SDSS. To effectively accomplish strategic goals, such an SDSS should be incorporated into a firm's enterprise system (ESs). Existing enterprise systems such as enterprise resource planning (ERP) systems are really “a patchwork of enterprise programs.” An ERP system intends to integrate and automate traditional back office functions such as finance, human resources, operations, etc. These functions are transaction-oriented. Tremendous potential can be cultivated through enhancing the decision support capability of ESs. The TC-based SDSS integrates transactions with strategies and therefore provides an excellent model for enhancing decision support capabilities of enterprise systems.