Table of Contents
2.0 Value of decision analysis within the context of an organization.
3.0 Challenges facing research and assumptions we have made.
4.0 Application of decision analysis and development of a decision tree.
4.0 Expected values, a suitable approach for iResearch through rollback method, and recommendation for iResearch’ managers.
5.0 Strengths and limitations of our analysis in the context of the decision problem.
6.0 Influence of the research engineers changing their initial probability estimates, and influence of probability estimates and uncertainty within the decision-making process.
In this age of globalization and the competitive business environment, decision analysis plays a significant role in making an effective and efficient decision for a business. This paper first discusses the values of decision analysis in terms of business. Then, this paper applies a suitable method to analyze complex decision problems for a business called iResearch. Then, this paper evaluates the positive and negative sites of the analysis. Finally, this paper evaluates how probability estimates and uncertainty affect the performance of the decision making process.
2.0 Value of decision analysis within the context of an organization
According to Lunenburg (2010), business organizations face different kinds of uncertainties as well as risks and risk to do business in different ways. A conscious decision is significant in high-risk businesses. Thus, to achieve a good outcome by focusing on an effective decision-making process, business organizations should assess a number of choices to select the suitable option to solve a specific business problem. McNamee and Celona (2016) stated that decision analysis helps in identifying different variables according to a number of needs that ultimately affect the performance of the decision-making process.
Brown and Peterson (2014) said decision analysis has developed as an essential technique compared to the old technique such as operations research and system model. According to Golub, (2016), the decision analysis process is a significant tool for businesses in terms of making both tactical and strategic business decisions. Bunn (2016) said decision analysis is a great tool for business decision-makers to analyze, model and optimize different kinds of decisions.
According to Adair (2013), because of the great capability of the decision analysis process can help business organizations to make effective decisions in risky and complex situations. Most of the business organizations have taken the great advantage of decision analysis for crucial decision making. The systematic framework belongs to the decision analysis that helps decision-makers to consider different preferences in a systematic way when presenting interrelationship between a specific problem’s number of aspects and the possible solutions.
Burnard (2014) said decision analysis in business supports decision-makers in choosing the best alternative that is accessible under some particular circumstances and this finally supports the business organization to find out the best solution for businesses. Matheson and Howard (2018) claimed that effective decision analysis supports a business organization to properly frame the problems and find out the best solution. Brown and Peterson (2014) said decision analysis formalizes business communication with a specific language to discuss the specific decision problem.
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3.0 Challenges facing iresearch and assumptions we have made
The key challenges for the iResearch to decide whether it will make a proposal for ACME. Then, it is a challenging issue for iResearch to approve its proposal by ACME. This is because if it fails to choose the best option, it will fail to ensure the expected outcome. There are two key options that are web-based platforms or mobile-based platforms. Then, there are four software packages.
Among these options, iResearch needs to choose the right and best options that are quite difficult. iResearch cannot start work on software packages without the acceptance of the proposal by ACME. Additionally, there is financial and time limitation for iResearch because it cannot work more than one software package at a time. Then, iResearch has opportunities for developing any two software packages…………………