Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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A DEA-Based Portfolio Model for Performance Management of Online Games

DEA 기반 온라인 게임 성과 관리 포트폴리오 모형

  • Chun, Hoon (The Graduate School of Public Policy and Information Technology, Seoul National University of Science and Technology) ;
  • Lee, Hakyeon (The Graduate School of Public Policy and Information Technology, Seoul National University of Science and Technology)
  • 전훈 (서울과학기술대학교 IT정책전문대학원) ;
  • 이학연 (서울과학기술대학교 IT정책전문대학원)
  • Received : 2013.01.13
  • Accepted : 2013.03.21
  • Published : 2013.08.15
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Abstract

This paper proposes a strategic portfolio model for managing performance of online games. The portfolio matrix is composed of two dimensions: financial performance and non-financial performance. Financial performance is measured by the conventional measure, average revenue per user (ARPU). In terms of non-financial performance, five non-financial key performance indicators (KPIs) that have been widely used in the online game industry are utilized: RU (Register User), VU (Visiting User), TS (Time Spent), ACU (Average Current User), MCU (Maximum Current User). Data envelopment analysis (DEA) is then employed to produce a single performance measure aggregating the five KPIs. DEA is a linear programming model for measuring the relative efficiency of decision making unit (DMUs) with multiple inputs and outputs. This study employs DEA as a tool for multiple criteria decision making (MCDM), in particular, the pure output model without inputs. Combining the two types of performance produces the online game portfolio matrix with four quadrants: Dark Horse, Stop Loss, Jack Pot, Luxury Goods. A case study of 39 online games provided by company 'N' is provided. The proposed portfolio model is expected to be fruitfully used for strategic decision making of online game companies.

Keywords

References

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