We form organizations to get work done. As the work we want to do gets larger and more complex, so do our organizations.
In general, the forces of competition are imposing a need for more effective decision making at all levels in organizations.
Progressive Approach to Modeling: Modeling for decision making involves two distinct parties, one is the decision-maker and the other is the model-builder known as the analyst. Therefore, the analyst must be equipped with more than a set of analytical methods.
Specialists in model building are often tempted to study a problem, and then go off in isolation to develop an elaborate mathematical model for use by the manager i. Unfortunately the manager may not understand this model and may either use it blindly or reject it entirely.
The specialist may feel that the manager is too ignorant and unsophisticated to appreciate the model, while the manager may feel that the specialist lives in a dream world of unrealistic assumptions and irrelevant mathematical language.
Such miscommunication can be avoided if the manager works with the specialist to develop first a simple model that provides a crude but understandable analysis. After the manager has built up confidence in this model, additional detail and sophistication can be added, perhaps progressively only a bit at a time.
This process requires an investment of time on the part of the manager and sincere interest on the part of the specialist in solving the manager's real problem, rather than in creating and trying to explain sophisticated models.
This progressive model building is often referred to as the bootstrapping approach and is the most important factor in determining successful implementation of a decision model. Moreover the bootstrapping approach simplifies otherwise the difficult task of model validating and verification processes.
What is a System: Systems are formed with parts put together in a particular manner in order to pursuit an objective.
The relationship between the parts determines what the system does and how it functions as a whole. Therefore, the relationship in a system are often more important than the individual parts.
In general, systems that are building blocks for other systems are called subsystems The Dynamics of a System: A system that does not change is a static i. Many of the systems we are part of are dynamic systems, which are they change over time. We refer to the way a system changes over time as the system's behavior.
And when the system's development follows a typical pattern we say the system has a behavior pattern. Whether a system is static or dynamic depends on which time horizon you choose and which variables you concentrate on.
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The time horizon is the time period within which you study the system. The variables are changeable values on the system. In deterministic modelsa good decision is judged by the outcome alone.Take a look and see how your site stacks up by conducting your own website analysis.
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