3. An introduction to decision-making

Traditionally, a decision is defined as being a choice: a choice about a course of action [16], the choice of a strategy for action [17], a choice leading to a certain desired objective [18]. It can be clearly understood that decision-making as a non-random activity concluding in the selection of one course of action among multiple strategies and DSS is a prevailing system that can ease this process [6].

Simon stated that the process of making the decision includes three basic phases: intelligence, design, and choice [19]. Turban described how implementation, is also required over and above a "paper" solution, as the fourth phase, in order to solve the original problem [2].

The intelligence phase, or problem identification, involves gaining awareness that inconsistencies exist between the current state of a situation and the desired circumstances. At this level the decision maker tries to diagnose the problems that need to be addressed and/or opportunities that need to be tracked [20].

In the design phase, a decision maker attempts to generate alternatives, and analyses the options to provide knowledge about their relevant implications. During this phase, the decision maker may find that supplementary knowledge is required. This leads to a return to the intelligence stage to clarify the problems before continuing with the design activity [6].

During the choice phase, the decision maker selects one of the proposed alternatives that have been explored in the design phase. The outcome depends on the nature of the decision context and the decision maker's own traits and idiosyncrasies. It may be that none of the alternatives are satisfying (return to the design phase), that several competing alternatives gain high scores, or that the state of the context has changed dramatically after analysis of alternatives (return to the intelligence phase). However, one option must be chosen for implementation [21].

The fourth and final step is implementation. This phase includes a set of chosen solutions that need to be approved by stakeholders and put into action over time [20]. This requires cautious planning and sensitivity to those involved in the process and/or those affected by it. The resolution must then be monitored to guarantee that the problem has been corrected. If the problem has been rectified, then the decision-making procedure is finalized [22]. Generally, the outcome of successful implementation is solving the real problem while any failure results in returning to a former phase of the process [2].

### 3.1. The structure of decisions

3. An introduction to decision-making

Figure 3. The desirable characteristics and capabilities of DSS.

opportunities that need to be tracked [20].

this process [6].

24 Management of Information Systems

Traditionally, a decision is defined as being a choice: a choice about a course of action [16], the choice of a strategy for action [17], a choice leading to a certain desired objective [18]. It can be clearly understood that decision-making as a non-random activity concluding in the selection of one course of action among multiple strategies and DSS is a prevailing system that can ease

Simon stated that the process of making the decision includes three basic phases: intelligence, design, and choice [19]. Turban described how implementation, is also required over and above a "paper" solution, as the fourth phase, in order to solve the original problem [2].

The intelligence phase, or problem identification, involves gaining awareness that inconsistencies exist between the current state of a situation and the desired circumstances. At this level the decision maker tries to diagnose the problems that need to be addressed and/or

In the design phase, a decision maker attempts to generate alternatives, and analyses the options to provide knowledge about their relevant implications. During this phase, the decision maker may find that supplementary knowledge is required. This leads to a return to the

During the choice phase, the decision maker selects one of the proposed alternatives that have been explored in the design phase. The outcome depends on the nature of the decision context

intelligence stage to clarify the problems before continuing with the design activity [6].

There is a variety of decision types which can be classified based on specific factors. An appreciation of decision types can assist decision makers understand what knowledge and knowledge manipulation features would be required in decision support system [6]. The level of "programmability" or structuredness is a helpful aspect for understanding and classifying decisions. Simon argued that decisions could be placed along a spectrum from highly structured to completely unstructured [23]. Decisions may also be further classified as single-stage and multiple-stage, with either risk, certainty or uncertainty of outcome.

Structured decisions are made when well-known procedures can be readily applied to all the phases of decision-making to provide standard solutions for repetitive problems. They are characterized by definite decision criteria, a limited number of precise alternatives whose consequences can be worked out without any complexity [24].


Table 1. Decision structuredness [6].

A semi-structured decision is made when some, but not all, of the phases of decision-making are structured. While some standard solution procedures may be applicable, human judgment is also called upon to develop decisions which tend to be adaptive in nature [1].

When none of the phases of decision-making are structured, the resulting decisions are classified as unstructured. Lack of clear decision criterion and the difficulty in identifying a finite set of alternatives and high levels of uncertainty concerning the consequences of the known alternatives at most of the decision levels, are all symptoms of this unstructuredness [25].

Semi-structured and unstructured decisions are made when problems are ill-defined (illstructured). Srinivasan et al. notes that most real-world problems fall towards the unstructured end of this spectrum [20]. Table 1 demonstrates the characteristics of structured and unstructured decisions.
