1 Summary of decision making tools Reflect “bounded rationality” Hidden assumptions Helpful if assumptions hold Apply these tools to the contexts where they are most suitable Adjust decision making when there is a change

2 Electronic Child Health Network (eCHN) Understand planning issues under the real situation Further understanding of the decision making process Become familiar with the strategy analytical tools

3 Why develop CHN? Competitive Battleground New Entrants Suppliers Buyers Substitute products or services Porter’s five forces model

4 How does CHN work? CHN RPC North RPC Center RPC West RPC Southeast Hospitals, other Health care providers, and patients Hospitals, other Health care providers, and patients Hospitals, other Health care providers, and patients Hospitals, other Health care providers, and patients

5 eCHN Consists of: 1. One web site for patients: YCH a. For parents b. For kids c. My child is sick 2. One web site for health care professionals (PROFOR) 3. One secure system to share a child’s medical records (HDN)

6 Benefits of eCHN patients Physicians Hospitals Canadian health care system

7 What are problems faced by Andrew Szende

8 What makes eCHN unique?

9 What are criteria?

10 What are alternatives?

11 Summary There are different types of decision making problems Rationality assumption doesn’t hold especially for unstructured problem Real decision problems are very complex Group decision making is a way to improve the quality of decision making

12 ProblemClarityProblemClarity Well-definedGoalWell-definedGoal KnownOptionsKnownOptions objectiveEvaluationobjectiveEvaluation NoConstraintsNoConstraints MaximumPayoffMaximumPayoff Assumptions of Rational DecisionMakingAssumptions DecisionMaking

13 Well-Structured Level in Organization Programmed Decisions Programmed Decisions TopPoorly Structured Type of Problem Lower Nonprogrammed Decisions Nonprogrammed Decisions Types of decision making problems

14 A Model of Bounded Rationality Ascertain the Need for a Decision Simplify the Problem Set“Satisficing”Criteria Identify a Limited Set of Alternatives CompareAlternatives Against Criteria Expand Search for Alternatives Select the First “Good Enough” Choice A “Satisficing” AlternativeExists Yes No

15 Analytic Conceptual Behavioral Directive RationalIntuitive Way of Thinking High Low Tolerance for Ambiguity Decision-Making Styles

16 Strengths of Individuals Groups Consistent Values Clear Accountability Speed Individual Versus Group Decision Making Increased Acceptance Higher Quality Decisions Input and Diversity

17 Group Decision Making More information More alternatives Increased acceptance Legitimacy Time-consuming Majority domination Pressures to conform Unclear responsibility AdvantagesDisadvantages

18 Group Decision Making Brainstorming Nominal Group Technique Electronic Meetings

19 National Culture and Decision Making Degree of Risk DecisionStyle