Published by: Nuru
Published date: 16 Jun 2021
The decision analysis phase is the process of making decisions based on research and systematic modeling of tradeoffs. This is often based on the development of quantitative measurements of opportunity and risk. It may also require human judgment and is not necessarily completely number-driven. Being able to address decisions made in an analytical and formal manner is hugely important, and can give your business some much-needed impetus in improving its long-term performance.
This work presents a meta-theory for deciding which systems analysis method should be used in a given circumstance. The decisions are to be based upon three criteria: (a) scope, (b) structure, and (c) nature of the process to be supported by information systems. Four development strategies are based on (a) end-user development, (b) inquiring systems, (c) decision analysis, and (d) data analysis. The paper summarizes the decision and data analysis methods and discusses the inquiring systems method in more detail.
Decision analysis uses a variety of tools to evaluate all relevant information to aid in the decision-making process and incorporates aspects of psychology, management techniques, training, and economics. It is often used to assess decisions that are made in the context of multiple variables and that have many possible outcomes or objectives. The process can be used by individuals or groups attempting to make a decision related to risk management, capital investments, and strategic business decisions.