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