Decision Making & Knowledge Management in Inquiring Organizations: Toward a New Decision-making Paradigm for DSS April 11, 2002 Keedong Yoo James F. Courtney Decision Support Systems, 31, 17–38, 2001

Advanced Topics in Management Information Systems (MIE780) Contents  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) Introduction Inquiring Organization Decision Making Process for DSS KnowledgeManagement New Decision Making Paradigm for DSS Unbounded Systems Thinking (UST) Singerian Organizational Model

Advanced Topics in Management Information Systems (MIE780) DSS 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)

Advanced Topics in Management Information Systems (MIE780) Conventional DSS Decision 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 Emphasis on Model Development & Problem Analysis!!!

Advanced Topics in Management Information Systems (MIE780) New Environments for DSS Decision Strategic planning problems have been messy and difficult because of the… Strategic Planning Level Semi-structuredProblemsSemi-structuredProblems 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 Wicked Problems No definitive formulation No definitive formulation No stopping rule No stopping rule Not true or false, but good or bad solution Not true or false, but good or bad solution No immediate or ultimate test of a solution No immediate or ultimate test of a solution Intensive solution (One-shot Operation) Intensive solution (One-shot Operation) No numerable set of potential solutions No numerable set of potential solutions Unique characteristics Unique characteristics A symptom of another problem A symptom of another problem Various explanation on a discrepancy Various explanation on a discrepancy (Planners) No right to be wrong (Planners) No right to be wrong No definitive formulation No definitive formulation No stopping rule No stopping rule Not true or false, but good or bad solution Not true or false, but good or bad solution No immediate or ultimate test of a solution No immediate or ultimate test of a solution Intensive solution (One-shot Operation) Intensive solution (One-shot Operation) No numerable set of potential solutions No numerable set of potential solutions Unique characteristics Unique characteristics A symptom of another problem A symptom of another problem Various explanation on a discrepancy Various explanation on a discrepancy (Planners) No right to be wrong (Planners) No right to be wrong

Advanced Topics in Management Information Systems (MIE780) Knowledge & 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 Organization

Advanced Topics in Management Information Systems (MIE780) Unbounded Systems 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 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 Decision 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 Knowledge Base Problem Type Process Knowledge * Yoo & Suh, 2001

Advanced Topics in Management Information Systems (MIE780) Example: Urban Infrastructure Planning & Development (1/4)  Conventional

Advanced Topics in Management Information Systems (MIE780) Example: Urban Infrastructure Planning & Development (2/4)  Adding Perspective P

Advanced Topics in Management Information Systems (MIE780) Example: Urban Infrastructure Planning & Development (3/4)  Adding Perspective O

Advanced Topics in Management Information Systems (MIE780) Example: Urban Infrastructure Planning & Development (4/4)  Adding Perspective E

Advanced Topics in Management Information Systems (MIE780) Multiple Perspective Approach  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) Conclusion New DSS Paradigm New DSS Paradigm Schultze’s Functional, Interpretive, Critical Perspective of Knowledge Schultze’s Functional, Interpretive, Critical Perspective of Knowledge Technical, Organizational, Personal, Ethical, Aesthetic Perspective of Singerian Technical, Organizational, Personal, Ethical, Aesthetic Perspective of Singerian Mitroff & Linstone’s Concept of Unbounded Systems Thinking Mitroff & Linstone’s Concept of Unbounded Systems Thinking