System dynamics of corporate strategy implementation - An analysis of Taiwan Chunghwa Telecom's ADSL initiative

Abstract

Taiwan Chunghwa Telecom's ADSL initiative launched in Q4 2000 has created a bench marking record of 40 subscribers /1000 population for year 2001. This paper employs system dynamics to the modeling of the implementation processes of Chunghwa's ADSL initiative. Validity of the model is tested and managerial implications are drawn. The research results indicate that the SD modeling techniques, incorporated with the relevant theories, can be effectively applied to simulate the implementation processes of a large-scale corporate strategy endeavor. Different effects resulted from alternative policy measures can be easily tested. A further refined SD model based on this research should be able to serve as a corporate strategy planning tool for a telecom company.