Source from:
March 2018 Special Issue Business SCAN

Information based decision making is about using, presenting and communicating data that supports your decision-making process. This month, we’re focusing on how managers and leaders must be able to undertake critical analysis and evaluation to support decision making and use effective problem-solving techniques.

Information Based Decision Making

Key techniques: Developing your skills and behaviours

Bounded Rationality Model of Decision-Making
Explore the two models of decision-making: rational and bounded rationality
The bounded rationality model takes into account the fact that people must engage in a limited search for information and alternative solutions, and reflects the limitations of individuals, groups, and organisations. Therefore, the model provides a more realistic view of the decision-making process.

Decision Trees
Make more intelligent decisions with decision trees
A decision tree is an analytical tool for analysing a series of decisions to be made over time. It is a pictorial representation of the flow of events in a logical and time-sequenced manner so that the decision-maker can consider the possible risks, rewards and consequences.

Knowledge Management
Use knowledge management to enhance learning and performance
The value of knowledge is a necessary but not sufficient condition for competitive advantage; it is how knowledge is exploited and managed that counts. Knowledge management encompasses any systematic attempt to acquire, produce, codify or share knowledge in order to positively enhance organisational learning, performance and competitiveness.

Information Management
Understand how information management can help decision-makers
Information management is the process by which relevant information is provided to decision-makers in a timely manner. Today, information is the lifeblood of the firm and a wide range of information management technologies are in use. In today’s globalised and turbulent environments, information management has become an important tool that helps build organisational competitive advantage.

Action Point

Read these techniques to develop the skills and behaviours you need to support information based decision making.

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Techniques Referenced in this Hot Topic

Bounded Rationality Model of Decision-Making | Decision Trees | Knowledge Management | Information Management

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