Decision Making and Decision Intelligence
I think many people are typing “decision making” in search engines but actually mean “give me something to improve decision making process, give me information about decision intelligence”.
Well, decision making can be made upon several sets of information: experience, feeling, corporate information (business intelligence) and market information (marketing intelligence). All together should serve to enhance decision making, decision intelligence and to create competitive intelligence.
While first two cases experience and feeling is hard to learn from books second two can be significantly enhanced in order to boost decision intelligence.
Decision Making Rules – Decision Intelligence Axioms
First rule is that all business information must be aligned with each other, they must have relations. That means figures cannot be information islands and their change must be possible to measure on other figures. If one business parameter – Key Performance Indicator is changed in projection of decision results, it is important to see reflections of change on other business parameters, financial and non-financial KPIs.
Second rule is to combine business intelligence with marketing intelligence. All information must be possible to combine, from internal and external sources because all figures affect decision results.
Third rule, Decision Support System must be live and effective in creating business value. Live – means to make projections in real time. Many Decision Support Systems in this basic Decision Making request. Effective means to have projections on basic financial ratios like profit, net profit, EBITDA and among all to see projections on Economic Value Add (EVA). This is the most important parameter for judging results of certain decisions and it is crucial to make projections of EVA during decision making process.
Related documents, articles and posts:
- Decision Making PDF
- Decision types
- Better Business Decision
- Decision Making in Business
- Information System and Decision Making