************************************************************ DSS News D. J. Power, Editor October 10, 2004 -- Vol. 5, No. 21 A Bi-Weekly Publication of DSSResources.COM ************************************************************ Check the case by Stellent "University of Alberta increases timely access to policies and procedures" at DSSResources.COM ************************************************************ Featured: * Ask Dan! - Do DSS builders assume their targeted users are rational thinkers? * DSS News Releases ************************************************************ Ask Dan! by Dan Power Do DSS builders assume their targeted users are rational thinkers? YES, generally. This question is somewhat troubling for me. The attitude that we, as DSS builders, have toward potential users of a DSS influences our design choices, but we also need to be realistic about the cognitive biases and limitations of our targeted users. Are people capable of "rational" thought? What is rationality? The Hyperdictionary defines rationality as "the quality of being consistent with or based on logic." The definition also states rationality is “the state of having good sense and sound judgment.” So rational thinkers base decisions on logic and have good sense and sound judgment. Wouldn’t we all like to think the targeted users of a planned DSS have these qualities? YES. Rationality has been used in philosophy to characterize a number of theories that presume human kind is seeking truth, is exercising “higher order” reasoning capabilities or that some people are knowledgeable and logical. According to WordIQ, “A logical argument is sometimes described as rational if it is logically valid. However, rationality is a much broader term than logic, as it includes ‘uncertain but sensible’ arguments based on probability, expectation, personal experience and the like, whereas logic deals principally with provable facts and demonstrably valid relations between them. … In economics, sociology, and political science, a decision or situation is often called rational if it is in some sense optimal, and individuals or organizations are often called rational if they tend to act somehow optimally in pursuit of their goals.” The term “bounded rationality” is used by Herbert Simon and others to described rational choice behavior that takes into account the cognitive limitations of both knowledge and cognitive capacity. So are we concerned about whether all people have this capability for rational thinking or just whether our targeted users are capable of rational thought? Some argue Nietzsche and Freud demonstrated that all people are incapable of rational thought. Nietzsche argues "In Twilight of the Idols" that human thought is not really based on reason, but that humans can mistake their approaches and incorrectly identify them as rational. According to Nietzsche, decision-making is rarely rational because it is often influenced adversely by the error of confusing cause and effect; the error of false causality; and the error of imaginary causes. Also, the research on decision biases should be taken into account when building a DSS ... but knowing how to reduce human bias while using a DSS is still a troubling challenge. For example, Tversky and Kahneman (1974) showed making estimates can be influenced by the value used as a starting point. This has been called the anchoring and adjustment phenomenon. Also, behavioral research has demonstrated that people display overconfidence in most situations. People think they know more than they really do. As a DSS builder my working assumption has always been that the serious users of a DSS were interacting with the system to improve the quality of the decision that was made. The DSS users wanted to be rational in their analysis and selection of a course of action. One can argue that the user of a data-driven DSS may use the system to bolster a choice that was previously made with newly found "facts". Perhaps ... it seems plausible that using a data-driven DSS to support rationalizing might alter the previously made decision as well. One might ask what would we do differently if people weren't rational when we built a DSS? Would one want to cater to whims and biases to encourage use of the system? Or would one want to focus more on decision automation? At best my conclusion is that many managers and responsible decision makers attempt to be rational, wise and thoughtful in their decision-making. DSS builders should try to reinforce the intended rationality of the targeted user of a specific DSS. When one builds a model-driven DSS the assumptions of the quantitative model should be explicit and understandable. A DSS builder must work to avoid introducing "irrationality" into the modeling process. When simplifications are made in the construction of a DSS, then the builder must make sure the user can understand the trade-off that was made. A few years ago I chaired a panel on the philosophical foundations of Decision Support Systems at the AMCIS meeting in Boston. Both Jim Courtney and George Widmeyer focused on C. Wes Churchman’s work and that of his mentor Singer. As a Ph.D. student I was heavily influenced by Churchman's book "The Design of Inquiring Systems", but I must admit it is a challenging book to read. Churchman presents a vision of a general inquiring system and various approaches to constructing such a system. My desire in building DSS has never been so sweeping. My thinking about reason and rationality was also strongly influenced by John Dewey's book titled "How we think". So pragmatism has strongly impacted my approach to systems design. As a technologist I don't often dwell in the depths of the philosophical foundations of DSS. The practice of building DSS is much guided by what works and that is perhaps as it should be given the demands placed upon DSS builders by the users of computerized DSS. So to those who build DSS I suggest a bit of introspection. What do you assume about your intended users? Are they sophisticated, rational managers? Are your users technology illiterates who are prone to make mistakes when they use a computerized system? Are you trying to "bullet proof" the application to avoid stupid errors? Are your intended users trying to make fact-based decisions? We know the targeted users of a DSS will differ based upon the specific system that is being built in a specific organization. Some systems may have a goal of increasing rationality in a specific situation. Other systems may only enhance the intended or desired rationality of the targeted decision makers. Enough about rationality for this Ask Dan! The topic is perplexing from a design standpoint. No computerized system can force a person to act in a rational way when that is not the person's goal and no DSS can guarantee a rational solution to a complex problem or guarantee that the correct facts about a situation will be uncovered or that relevant knowledge will be applied to resolve problems. DSS can help us struggle more effectively with the challenge of decision making and planning in a rapidly changing, complex, uncertain, information rich situation that we have had some experience with resolving. People need to grapple with novel, unique decision situations as best they can. Perhaps a general purpose decision structuring program will assist in such a situation, but success in such a situation is lodged in the creative, adaptive mind of the human decision maker. I build Decision Support Systems because I believe at least some people are capable of "rational" thought ... IMHO a well-designed Decision Support System can encourage "rational" thinking in a specific decision situation. Greetings from Hong Kong This Ask Dan! was written during a visit to Hong Kong, PRC that began October 1, 2004 and is scheduled to end on October 15, 2004. My trip involves teaching MBA students about Information Systems and especially Decision Support Systems. It is always a joy to see the progress that good students can make in a short period of time in understanding how technology can be used to improve individual, group and organizational decision-making. **************************************** References Churchman, C. W., The Design of Inquiring Systems, Basic Books, NY, 1971. Hyperdictionary, at http://www.hyperdictionary.com/dictionary/rationality Nietzsche, Friedrich. Twilight of the Idols, 1895, at http://www.inquiria.com/twilight.html Tversky, A. and Kahneman, D. “Judgment under uncertainty: Heuristics and biases”. Science, 185, 1974, 1124-1131. http://www.wordiq.com/definition/Rationality ************************************************************ Put your ad here! Reach specialists interested in DSS Email power@dssresources.com for details ************************************************************ DSS News - September 27 to October 8, 2004 Read them at DSSResources.COM and search the DSS News Archive 10/08/2004 Oracle and HP smash world record for TPC-H 10 TB data warehousing benchmark. 10/07/2004 SAS achieves leadership status in META group's evaluation of data mining tools. 10/06/2004 BPM Partners asks, "Cheers or Jeers for the Performance Management Industry?". 10/06/2004 Salary.com CompPlanner awarded Top HR Product of the Year by Human Resource Executive Magazine. 10/06/2004 Marriott helps couples plan the 'Big Day' with new dedicated wedding web site. 10/06/2004 Geac wins 2004 "World Class Solution" award for best corporate performance management implementation. 10/06/2004 U.S. Office of Naval Research implements Open Text's Livelink Software suite. 10/06/2004 HP, Boston Fire Dept. and solution providers deploy mobile computing solution giving real-time incident data to first responders. 10/05/2004 Zeosoft Technology Group's Mobile AppBuilder entry edition delivers business and consumer wireless database applications. 10/04/2004 Visibility in supply chains means firms will compete supply chain to supply chain, according to new study. 10/04/2004 Study on industrial cyber security reveals tenfold increase in number of successful attacks on process control and SCADA systems since 2000.. 10/04/2004 Outsource: Competing in the global productivity race. 10/04/2004 Microsoft releases Microsoft Business Solutions-Solomon 6.0. 10/04/2004 Experian launches enhanced Commercial Intelliscore and Small Business Intelliscore credit decisioning tools. 10/01/2004 IDG's Computerworld recognizes `Best Practices in Business Intelligence' Award winners. 10/01/2004 Hennepin County Sheriff's Office and the Minnesota BCA receive Government Computer News' Agency award for adoption of the Identix IBIS Mobile ID system. 09/30/2004 Global risk management firm leverages NetSuite for success. 09/30/2004 Decisioneering announces Crystal Ball 7 for improved business decisions. 09/29/2004 Microsoft expands business intelligence functionality for SQL Server 2000 and SQL Server 2005. 09/29/2004 Mindjet founders win Ernst & Young Entrepreneur of the Year 2004 Award. 09/29/2004 MicroStrategy and DuPont Crop Protection win DM Review's World Class Solution Award for Business Intelligence. 09/29/2004 ProClarity sets new standard in business intelligence with revolutionary new product. 09/29/2004 Ascential Software brings order to Jennie-O Turkey Store's Corporate Information Factory. 09/29/2004 Sun Microsystems helps major European Bank reduce operational risk while addressing Basel II regulations. 09/28/2004 arcplan launches dynaSight SMB business intelligence software for small and midsize businesses. 09/28/2004 Mariner's Wayne Snyder launches the premier web site for Microsoft business intelligence. 09/27/2004 Sun Microsystems launches Sun Technology and Academic Resources (STAR) initiative to reduce cost and complexity for education IT community. 09/27/2004 New! Security robot cuts false alarms with mobile remote surveillance. 09/27/2004 BPM Partners: Performance management tools help improve financial and operational measures for healthcare organizations. ************************************************************ Subscribe to DSSResources.COM. One month $10, six months $25. Visit http://dssresources.com/subscriber/subscriber.html ************************************************************ DSS News is copyrighted (c) 2004 by D. J. Power. Please send your questions to daniel.power@dssresources.com. |