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description
Decision Making & Knowledge Management
in Inquiring Organizations: Toward a New Decision-making
Paradigm for DSS
April 11, 2002Keedong Yoo
James F. CourtneyDecision Support Systems, 31, 17–38, 2001
Advanced Topics in Management Information Systems (MIE780)
ContentsContents Introduction DSS Concept Conventional DSS Decision Making Process New Environment for DSS Decision Knowledge & Management Inquiring Organization Unbounded Systems Thinking (UST) New DSS Paradigm Example Conclusion
Advanced Topics in Management Information Systems (MIE780)
IntroductionIntroduction
Inquiring Organization
Decision MakingDecision MakingProcess for DSSProcess for DSS
KnowledgeKnowledgeManagementManagement
New New Decision Decision Making Making
Paradigm Paradigm for DSSfor DSS
UnboundedSystems Thinking
(UST)
Singerian Organizational
Model
Advanced Topics in Management Information Systems (MIE780)
DSS ConceptDSS Concept
Anthony (1965) Categories of Management Activities
– Strategic Planning, Management Control, Operational Control
Simon (1960) Description of Decision Type
– Decision problems as existing on a continuum from programmed to non-programmed
Gorry & Morton (1971)
BillingPurchasingDividendsStructuredAssignmentsBudgetingForecastingSemi-structuredGrievancesCareer Pathse-CommerceUnstructured
Operational Control
Management Control
Strategic Planning
BillingPurchasingDividendsStructuredAssignmentsBudgetingForecastingSemi-structuredGrievancesCareer Pathse-CommerceUnstructured
Operational Control
Management Control
Strategic Planning
Advanced Topics in Management Information Systems (MIE780)
Conventional DSS Conventional DSS Decision Making ProcessDecision Making Process
Simon (1960) 3 Phases of Decision Making Process
– Intelligence: Searching the environment for problems– Design: Developing alternative ways to solve the problem– Choice: Analyzing the alternatives and choosing one
Problem RecognitionProblem Recognition
Problem DefinitionProblem Definition
Alternative GenerationAlternative Generation
Model DevelopmentModel DevelopmentAlternative AnalysisAlternative Analysis
ChoiceChoice
I nterpretationI nterpretation
Emphasis onModel Development & Problem Analysis!!!
Advanced Topics in Management Information Systems (MIE780)
New Environments for New Environments for DSS DecisionDSS Decision
Strategic planning problems have been messy and difficult because of the…
Strategic Planning
LevelSemi-structuredSemi-structured
ProblemsProblems
Large number of factors involved Uncertainty about relationships among factors Uncertainty about the future Expansion of globalization Closer connection of suppliers, producers, and
customers
Problems are getting ‘WICKED’
Advanced Topics in Management Information Systems (MIE780)
10 Properties of 10 Properties of Wicked ProblemsWicked Problems
No definitive formulationNo definitive formulation No stopping ruleNo stopping rule Not true or false, but good or bad solutionNot true or false, but good or bad solution No immediate or ultimate test of a solutionNo immediate or ultimate test of a solution Intensive solution (One-shot Operation)Intensive solution (One-shot Operation) No numerable set of potential solutionsNo numerable set of potential solutions Unique characteristicsUnique characteristics A symptom of another problemA symptom of another problem Various explanation on a discrepancyVarious explanation on a discrepancy (Planners) No right to be wrong(Planners) No right to be wrong
Advanced Topics in Management Information Systems (MIE780)
Knowledge & ManagementKnowledge & Management Types of Knowledge
Explicit vs. Tacit (Nonaka, 1994) Procedural vs. Declarative (Paradice et al., 1989) Esoteric vs. Exoteric (Mitroff et al., 1993) Shallow vs. Deep (Paradice et al., 1989)
Perspectives on Knowledge Management (Schultze, 1998) Functional (Bock(1998), Nonaka(1994))
– Knowledge can be captured, codified, and shared Interpretive (Churchman(1971))
– Knowledge is knowing how to do something correctly Critical (Schultze(1998))
– Knowledge can be exhibited in the social conflict and antagonistic relationships
Advanced Topics in Management Information Systems (MIE780)
Inquiring OrganizationInquiring Organization
Advanced Topics in Management Information Systems (MIE780)
Unbounded Systems Unbounded Systems Thinking (UST)Thinking (UST)
Mitroff & Linstone (1993) Sweeping in the other thinking styles (Deploying any kinds of
appropriate discipline or profession) “Everything interacts with everything” “One must know everything before one can know anything"
(Deploying critics of more simplistic or reductionistic persuasion)
“The unboundedness of all problems of all systems can be construed as an opportunity and a challenge to perpetually enrich our knowledge of the world”
Multiple Perspectives– Organizational & social perspective(O)– Personal & individual perspective(P)– Technical perspective(T)– Ethical & aesthetical perspective(E)
Advanced Topics in Management Information Systems (MIE780)
New DSS ParadigmNew DSS Paradigm
Determines what data and what perspectives we examine in a world of overabundant data sources and a plethora of ways of viewing that data
Advanced Topics in Management Information Systems (MIE780)
Knowledge-based Knowledge-based Decision Making ProcessDecision Making Process
Identifying Problem
Consulting Problem Context
Extracting Alternatives
Similarity Analysis
Extracting Alternative Decisions
Evaluating the Results
Decision
Problem Spec.
Problem Diagnosis
Process Spec.
Probability
Constraints
Optimal Solution
KnowledgeBase
Problem Type
Process Knowledge
* Yoo & Suh, 2001
Advanced Topics in Management Information Systems (MIE780)
Example: Urban Infrastructure Example: Urban Infrastructure Planning & Development (1/4)Planning & Development (1/4)
Conventional
Advanced Topics in Management Information Systems (MIE780)
Example: Urban Infrastructure Example: Urban Infrastructure Planning & Development (2/4)Planning & Development (2/4)
Adding Perspective P
Advanced Topics in Management Information Systems (MIE780)
Example: Urban Infrastructure Example: Urban Infrastructure Planning & Development (3/4)Planning & Development (3/4)
Adding Perspective O
Advanced Topics in Management Information Systems (MIE780)
Example: Urban Infrastructure Example: Urban Infrastructure Planning & Development (4/4)Planning & Development (4/4)
Adding Perspective E
Advanced Topics in Management Information Systems (MIE780)
Multiple Perspective Multiple Perspective ApproachApproach
Application Guidelines Strike for a balance among technical, organizational and
personal perspectives Foster a dialectic among those holding various perspectives
and draw out the most plausible elements of each Recognize that organizational and personal perspectives
require greatly different methods than the technical Pay attention to the mutual impact, interdependencies, and
integration of perspectives Beware of thinking statically in dynamic environments
Advanced Topics in Management Information Systems (MIE780)
ConclusionConclusion
NewDSS
Paradigm
Schultze’sFunctional,
Interpretive,Critical
Perspectiveof Knowledge
Technical,Organizational,
Personal,Ethical,
AestheticPerspectiveof Singerian
Mitroff & Linstone’sConcept of
Unbounded SystemsThinking