Applying Decision Analysis to Diverse Domains: An Introduction to the Special Issue
Decision analysis (DA) is one of the key tools in operations research (OR). DA is particularly effective at mapping the real world to the model representation to enable the application of formal analysis. DA is a flexible modeling paradigm that has existed since the 1960 s, based on statistical decision theory, elements of utility from economics, probability theory, dynamic programming, and stochastic programming. It aims to identify an optimal course of action for decision problems with uncertainties that affect outcomes and values. Optimal here means expected-utility maximizing, which decision theory shows to be equivalent to following axioms of rationality given a set of beliefs. DA articles have appeared with some regularity in Interfaces (the predecessor to INFORMS Journal on Applied Analytics (IJAA)), with early applications focusing on policy and later ones on research and development in consumer products, pharmaceuticals, and oil and gas, quite naturally because these applications have distinct…
Reducing the impact of misinformation and fake news
New methods to effectively reduce the negative impact of misinformation and fake news on people’s opinions An investigation into Team Jorge’s activites has shown the sinister influence of misinformation and fake news on politics, society and the economy. Misinformation and fake news became a global phenomenon with the 2016 U.S. presidential election and the Brexit referendum, particularly because more and more people are using social media as a source of news without reflection. The use of artificial intelligence (e.g. chat GPT) in the generation and dissemination of misinformation and fake news will strengthen their influence in the future.The spread of misinformation and fake news on the internet and its consequences are being intensively discussed in the European Parliament. Nevertheless, so far, there is no clear agreement on how to reduce the influence of misinformation and fake news. “The problem with misinformation and fake news is that even if it is…
Making a good career choice: A decision-analytical intervention to enhance proactive decision-making and career choice self-efficacy in high school students
At the end of high school, teenagers must deal with the first life-changing decision of determining what to do after graduation. For these decisions, adolescents need to be able to make good choices. However, most schools have not yet implemented decision training into their curricula. A new intervention called “KLUGentscheiden!” was developed to train complex decision-making in high school students to close this gap. The intervention targets three critical components of good decision-making: envisioning one’s objectives, identifying relevant alternatives, and comparing the identified alternatives by a weighted evaluation. We assumed that successfully training those decision-analytical steps should enhance self-perceived proactive decision-making skills. In addition, the training should also enhance self-assessed career choice self-efficacy. The intervention was evaluated in a pseudorandomized control study, including 193 high school students. The intervention group significantly increased proactive decision-making skills and career choice self-efficacy compared to the control group. Although different long-term evaluations are still…
Supporting Innovation in Early-Stage Pharmaceutical Development Decisions
Pharmaceutical companies have frequent portfolio reviews to monitor development progress and prioritize development assets. The earliest assets are drug candidates whose efficacy is unknown and whose effects on the human body have yet to be fully investigated. These assets are characterized by a high degree of uncertainty in reaching the market and in being used in clinical practice. In addition, not all potential applications are foreseen and can often be very different. In the absence of satisfactory methods for making decisions on resource allocation among early development assets, decision makers focus almost exclusively on assessments of an asset’s probability of technical success. This study proposes a more holistic methodology to support early-stage pharmaceutical development decisions using value-focused thinking and multicriteria decision making. The methodology operates within the decision quality framework and provides a consistent evaluation of various early development assets across a diverse set of disease areas. This combination of…
Effects of Decision Training On Individuals’ Decision-Making Proactivity
Decision sciences are in general agreement on the theoretical relevance of decision training. From an empirical standpoint, however, only a few studies test its effectiveness or practical usefulness, and even less address the impact of decision training on the structuring of problems systematically. Yet that task is widely considered to be the most crucial in decision-making processes, and current research suggests that effectively structuring problems and generating alternatives—as epitomized by the concept of proactive decision making—increases satisfaction with the decision as well as life satisfaction more generally. This paper empirically tests the effect of decision training on two facets of proactive decision making—cognitive skills and personality traits—and on decision satisfaction. In quasi-experimental field studies based on three distinct decision-making courses and two control groups, we analyze longitudinal data on 1,013 decision makers/analysts with different levels of experience. The results reveal positive training effects on proactive cognitive skills and decision satisfaction,…
Defining and Aligning Supply Chain Objectives Before, During, and After the COVID-19 Pandemic 3
In order to deal with the COVID-19 pandemic, many companies face numerous strategic decisions of utmost importance for their future. Being aware of one‘s objectives is a prerequisite for sound decision making. However, decision and policymakers are often not aware of their objectives when facing important decisions in “normal” times. In addition, specific objectives have to be identified in times of crisis such as theCOVID-19 pandemic. In this article, we provide guidelines for managers that illustrate the following. (i) How to identify company objectives? (ii) How to align them within their supply chains and with governmental objectives of policy makers? (iii) How to adjust objectives during and after theCOVID-19 pandemic? Furthermore, we suggest comprehensive sets of relevant objectives and propose an iterative process to define, align, and adjust objectives. The study may help practitioners from business and public administration when making decisions and policies. Researchers may be inspired by the…
Comparative Analysis of Terrorists’ Objectives Hierarchies
To develop effective counterterrorism strategies, it is important to understand the capabilities and objectives of terrorist groups. Much of the understanding of these groups comes from intelligence collection and analysis of their capabilities. In contrast, the objectives of terrorists are less well understood. In this article, we describe a decision analysis methodology to identify and structure the objectives of terrorists based on the statements and writings of their leaders. This methodology was applied in three case studies, resulting in the three objectives hierarchies of al-Qaeda, Islamic State of Iraq and the Levant (ISIL), and Hezbollah. In this article, we propose a method to compare the three objectives hierarchies, highlight their key differences, and draw conclusions about effective counterterrorism strategies. We find that all three terrorist groups have a wide range of objectives going far beyond the objective of killing and terrorizing people in the non-Muslim world. Among the shared objectives…
Effects of Proactive Decision Making On Life Satisfaction
Proactive decision making, a concept recently introduced to behavioural operational research and decision analysis, addresses effective decision making during its phase of generating alternatives. It is measured on a scale comprising six dimensions grouped into two categories: proactive personality traits and proactive cognitive skills. Personality traits are grounded on such theoretical constructs as a proactive attitude and proactive behaviour; cognitive skills reflect value-focused thinking and decision quality. These traits and skills have been used to explain decision satisfaction, although their antecedents and other consequences have not yet been the subject of rigorous hypotheses and testing.
This paper embeds proactive decision making within a model of three possible consequences. We consider—and empirically test—decision satisfaction, general self-efficacy, and life satisfaction by conducting three studies with 1,300 participants. We then apply structural equation modelling to show that proactive decision making helps account for life satisfaction, an explanation mediated by general self-efficacy and decision satisfaction. Thus proactive decision making fosters greater belief in one’s abilities and increases satisfaction with one’s decisions and with life more generally. These results imply that it is worthwhile to help individuals enhance their decision-making proactivity.
Demonstrating the positive effects of proactive decision making at the individual level underscores how important is the phase of generating alternatives, and it also highlights the merit of employing “decision quality” principles and being proactive during that phase. Hence the findings presented here confirm the relevance of OR, and of decision-analytic principles, to the lives of ordinary people.
Can Novices Create Alternatives of The Same Quality as Experts?
The quality of alternatives is crucial for making good decisions. The process of generating high-quality alternatives can be enhanced by using decision makers’ objectives as prompts. This paper examines empirically the impact and interrelation of experience and the prompting with objectives on decision makers’ ability to create alternatives for an important decision. The study confirms with high significance that both experience and prompting with objectives enhance the quality of alternatives. We are able to show that all participants, irrespective of their experience, enhance the quality of their alternatives when they are prompted with objectives; i.e., the relationship between being prompted with objectives and the quality of alternatives is not moderated by experience. In contrast to gaining experience, prompting a participant with objectives can be utilized immediately without a long learning phase and is able to substitute for experience in certain decision contexts. Furthermore, we analyze how prompting with objectives affects the creation of alternatives. We find evidence that the relation between being prompted with objectives and the quality of alternatives is partially mediated by the number of objectives considered while creating alternatives.
A Media-Specific Balanced Scorecard Based on Value-Focused Thinking
Veröffentlichung Kunz, Reinhard; Siebert, Johannes U.; Mütterlein, Joschka. „A Media-Specific Balanced Scorecard Based on Value-Focused Thinking“, Journal of Media Business Studies, 13(4), 2016, 257-275. http://www.tandfonline.com/doi/full/10.1080/16522354.2016.1220114 Objectives are fundamental to strategic management. However, while research exists on objectives of media companies, we know little about the relationships between them. In order to advance research in this field, we used value-focused thinking to investigate the objectives of a media company and the balanced scorecard as a framework to demonstrate their relationships. In interviews with 23 managers and employees of a German medium-sized local newspaper company, we found 698 distinct objectives and 1009 relationships. By concentrating on the most important objectives, we derived a balanced scorecard with 33 objectives and 65 relationships organised in seven perspectives. The results were then validated in a second case study on a Czech national media group.