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Decision Improvement Technologies

We use our minds to process information and to make decisions. We make choices individually and in groups. Some decisions are personal and others are organizational. Some decisions meet the intended objectives and produce desired outcomes, but many do not. We build and use decision improvement technologies because research shows that they benefit us in situations with complexity, extensive data, and rapid change. The term decision improvement technologies is very broad and should be interpreted as encompassing any use of computing technology to improve individual, group, or organization decision making.

The terms decision improvement technologies and computerized decision aids refer to a diverse set of tools based on a variety of techniques. Some tools are complex and sophisticated and hence are classified as decision support systems (DSS). Other so-called computerized decision aids and technologies are simple (e.g., a web page with information or a web-based checklist) and hence are not DSS. A decision aid provides assistance or help in reaching a conclusion and making a choice among alternatives. In general, DSS are a subcategory of decision improvement technologies.

This entry briefly discusses the need for supporting decision makers, reviews behavioral decision theory and the history of computerized decision support, and presents a broad framework for classifying information technology interventions to support decision making.

Need for Decision Support

Our cognitive abilities differ. People encounter complex, multi-causal decision situations that create decision-making challenges. Some of us quickly grasp the facts in a situation and respond in a systematic, intendedly rational way. We try to identify a range of alternatives and make a choice that is consistent with our values and relevant goals and objectives. Some of us respond more intuitively and apply our past experiences to cope with the situation and respond appropriately. Some decision situations create enormous stress for decision makers, and the chosen response is inappropriate or wrong, which leads to more stress. Some decision-making behavior is difficult to explain and understand. If the consequences of a decision are important, then decision makers who are concerned about the quality of their decisions should use any cost-effective computing and information technology to aid, assist, or augment their decision process.

Some situations recur often enough that we develop solution methods to assist people in making the decision. Typically, these solution methods involve using mathematical models or heuristic rules. In other situations, information is provided in a timely way to advise or inform the decision maker(s). Decision processes need to be studied and analyzed to identify the need for a technology intervention and evaluate what technologies would improve decision making.

Builders of decision aids and decision support systems assume their intended users are rational and want to use the technologies. Rationality assumes people use reasoning capabilities and are knowledgeable and logical. Herbert Simon introduced the term “bounded rationality” to describe rational choice behavior that takes into account the limitations of both knowledge and cognitive capacity. Decision improvement technologies attempt to extend the bounds of human rationality.

No computerized system can ensure that a person will act in a rational way when that is not the person's goal. No decision support system can guarantee a rational solution to a complex problem or guarantee that the correct facts about a situation will be uncovered or that relevant knowledge will be applied to resolve problems. DSS can help us struggle more effectively with the challenge of decision making and planning in a rapidly changing, complex, uncertain, information-rich situation that we have had some experience with resolving. People need to grapple with novel, unique decision situations as best they can.

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