The importance of technology in the decision-making process

The importance of technology in the decision-making process

A decision is a choice between different options or possibilities that are taken to solve problems or seize opportunities. But if we don’t have the main product, that is, the information in a timely and available way, nothing will be possible. Many directors and managers do not arrive at a real solution within companies because they do not know, first: to identify the “problem-cause”, they always focus on the “problem-effect”.

To assist in this process and point to effective solutions, we need information technology.

In any case, we must consider:

problem = opportunity for improvement

problematic = process

But, to simplify the understanding, we will call the Project Process under the focus “Problem-Solution”.

To make effective decisions, I recommend following a process: Six Sigma base methodology (methodology for providing better, faster and process-based products). Along this line, we move on to the following steps:

DEFINE: formulate the Project

It implies defining the objectives of the Project based on a preliminary model of the problem that includes the following activities:

  • Define the work team;
  • Collect the needs and expectations of those involved;
  • Identify problems or opportunities for improvement;
  • Establish preliminary objectives, deadlines and costs of activities.

Recommended tools:

  • Project sheet to consolidate Objectives, Deadlines and Costs;
  • Two-dimensional framework to determine the importance of elements based on two variables;
  • Characterization diagram for general understanding of the system.

MEASURE: establish a Measurement System

Measure the frequency and possibilities of errors to establish goals based on the collection of internal and competitors’ numerical information. Suggested activities:

  • Establish the Process Flow;
  • Establish key elements of the problem;
  • Define relevant indicators;
  • Collect numerical information;
  • Validate the Measurement System to use it in the following phases.

Recommended tools:

  • Indicator sheets to specify the metrics and their sources;
  • Process Flowchart to identify key elements;
  • Benchmarketing to set realistic and relevant goals.

ANALYZE: structure problem and solutions

Deepen the causes that determine errors and define opportunities for improvement by prioritizing them. Suggested activities:

  • Analyze Cause-Effect relationships;
  • Validate relationships based on indicators;
  • Define solution alternatives.

DEPLOY: select and apply solutions

Define the specific elements that will be changed and the final goals. Develop the change project. Suggested activities:

  • Select alternatives to be implemented;
  • Final project plan;
  • Deploy solutions.

Recommended tools:

  • Management report to systematically monitor the project;
  • Pareto diagram to select the solutions that contribute the most value.

CONTROL: ensure continuous improvement

 Implement a Monitoring System to prevent previous practices from being resumed and additional problems identified.

  • Monitor the process to identify attempts to “go back to the past”;
  • Identification of additional problems.

Recommended tools:

  • Control table to establish incentive systems for those involved;
  • Benchmarking to keep the process within competitive parameters;
  • Define roles and responsibilities in improvement activities.

Final recommendations

  • To make decisions, the fundamental raw material is formal information, supported by a good IT platform with online information. Analyzing data from a period is like performing a management autopsy;
  • Do not focus on just one source of information, let alone underestimate or overestimate the value of the information received from others;
  • Let your employees participate and listen. Give them attention;
  • Consider education or preparation, the level of decision, your values and beliefs, people’s motivation and expectations.

Interact Solutions develops solutions to optimize and automate your company’s processes. Get in touch and get to know our Suite SA

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