Business Performance Management: Decision Making Process

1348 words - 5 pages

Describe how the system of the case study could support each of the decision-making phases of intelligence, design, and choice for the decision-makers. Explain the phase. Explain how the KBS supports or could support the phase for this case.

Simon’s decision making process consists of 3 phases which are Intelligence, Design and Choice. These phases can be used to simplify the assumptions, validate the models which are being used in the project and to verify, test the proposed solution. These phases are then followed by the Implementation phase after which the success or failure of the proposed system can be judged.
Intelligence phase consists of organizing the objectives, collection of data, Identifying and formulating the problem, problem ownership which helps to achieve a decision statement. The case study of Idaho Transportation Department follows the tax rule of charging high on the weight-distance tax and low for the registration fee for motor vehicles travelling on the highway. It has received repeated request for changing truck tax system. To process these repeated requests a few questions must be answered like how much revenue will be lost or gained? Taxes classification based on truck size? Behavioral and economic impact on taxes system? These issues must be answered so that the request can be processed further.
The next phase is the Design phase where we can classify the decisions, set a criteria, formulate a model, predict and measure the outcomes. We can breakdown all the broad categories into several options which can be related to that problem statement to give an appropriate decision. For this case study we can classify the above questions with Motor Carrier Taxation KBS(MCTKBS) as it comprises of over 200 distinct programs and several dozen data sets. To take the decisions for the repeated requests which were made by the legislature MCTKBS gives all the evidences which are related to the tax shifts or imbalances that will occur by the change, what groups will benefit and what groups will pay higher taxes and other evidences for the truck size.
Based on these options in the design phase we select a decision which can be the best solution for the problem. This phase is known as the choice phase. Based on this selection in the choice phase we implement it and get the solution which can either be successful or a failure. From the case it is said that for the above decisions taken in the design phase there can be many behavioral changes like there are many trucks in Idaho which are registered every year at a cost of 180$ per truck which are not driven or driven very less in Idaho and all these convenience registrations would be eliminated if the registration fee is increased considerably. The other example which was given was that to access the tax effect if all the trucks travelling less than 1,800 miles, are not registered.
These 3 phases of Simons decision model are used in this case study to give a solution to the...

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