Using IS for decision Making – Why it is important for organizations:

6 Feb

Using IS for decision Making: Why it is important for organizations:

(following on from our groups last post: https://eternalsunshineoftheismind.wordpress.com/2013/01/29/using-is-for-decision-making/)

Building on the previous blog for the introduction of how IS is used for decision making, I will go into more detail on a specific part of this aspect of Information Systems: Why it is important for Organizations to have IS involved in decision making and how it makes decision making easier.

When you wake up each morning, you make decisions, sometimes without even thinking about them! When your alarm clock goes off, do you turn it off and get up? or do you hit snooze, stay in bed and miss that 9 o’clock lecture you hate so much? What do you have for breakfast, cereal, toast, a piece of fruit? We make decisions constantly each day, and this is the same in businesses across the world!

In all organizations, decisions need to be made. Each day decisions are made by the ordinary worker, middle management, Department managers, even executive’s and a board of directors. In times such as this with economic instability a factor in decision making, it is becoming increasingly important that these key figures in organizations be able to make informed and sound solutions regarding critical decisions for their organization/company.

According to two professors from the Systems and Technology (S&T) department at the National Defense University’s (NDU) Information College (USA), evidence based decision making produces better outcomes, that is especially the case when coupled with quantitative and qualitative information. They also point out, however that “combining qualitative and quantitative information for decision-making is difficult for the average human. Automated tools, however, such as Decision Lens™ (http://www.decisionlens.com/), allows executives to use evidence-based decision-making with relative ease.” (http://www.governmentciomagazine.com/2012/09/critical-decision-making-made-easier)

Decision lens software combines quantitative and qualitative information to produce weighted value results using a very sophisticated decision-making algorithm, known as the Analytical Hierarchal Process or AHP, which compares the the two forms of information that would normally take hundreds of hours for a human to process. in addition, the automated AHP process also allows for the executives to focus solely on critical decisions as opposed to worrying about processing this information in order to attain accurate and decisive results!

This Decision lens software is just one example of programs that have been designed to aid in decision making, used by organizations to solve critical problems that face it. Many others exist, but for now this example will suffice to make the point that, IS can, in fact, aid the various levels of managers/employees in making critical decisions for an organization or company.

Decisions made today in a company will either ensure survival, see the organization flourish and grow or, in the worse case scenario, poorly informed decisions can prove to be the end for many businesses globally. Good decision making can therefore ensure the continued survival and/or success of an organization.

The example above not only shows that IS makes decision making easier by taking out the arduous task of processing key information and leaving management more time to focus on critical decisions to be made, but also shows that it is very important for companies to have Information Systems involved in the decision making process in order to make more informed, improved decisions.

One Response to “Using IS for decision Making – Why it is important for organizations:”

  1. sad111346076 February 7, 2013 at 12:02 pm #

    Very informative blog with great use of examples. Looking forward to more of your blogs!

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