Analysis of Decision Making Situation for Data Center Enhancements

This report analyzes a decision-making situation faced by Data Center Enhancements Inc., an IT consulting company. The company needs to update its storage facilities to support business growth and improve system agility. The report explores two main options: in-house facilities and cloud stora...Read More

Running head: DECISION MAKING SITUATION
DECISION MAKING SITUATION
Name of the Student
Name of the University
Author Note

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Executive Summary
Project managers has responsibility of managing situations where they may need to
influence consultants, contractors or staffs over whom they have full or no direct control. There
are several situation where managers need to make a decision for implement a successful project.
This report widely discussed about the Handling uncertainty in Capital Investments,
Classification of Decision Situation and Terminology Used in decision Analysis. This report will
analyze the decision making situation for a storage facility of Data Center Enhancements Inc.
and widely discussed terminology, cost investment and scalar principle regarding choosing the
correct option.

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Table of Contents
Introduction......................................................................................................................................3
Discussion....................................................................................................................................3
Project kick-off meeting..............................................................................................................3
Handling uncertainty in Capital Investments..............................................................................4
Classification of Decision Situation................................................................................................5
Terminology Used in decision Analysis......................................................................................5
The Scalar principle.....................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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Introduction
A decision making situation can be define as a critical situation where an organization
demand for managerial decision making process to expand their organizational performance, to
avoid damages or select and evaluate alternatives. In most of the cases decision is an opinion,
judgment or position get hold of after consideration. Data Center Enhancements Inc. is an
advanced IT consulting company specialized in large-scale infrastructure design and strategic
planning services is currently working on a project to enhance their services and implement their
business to upper level. As they are trying to increase their business their storage facility also
needs to update. The company want to implement their storage facilities to reduce their capital
expenditures, increase system agility and enhance systems management. There is mainly two
way the storage service can be implement as a new in house facilities or cloud. Now the decision
making team is to consider all option and make a suitable decision that suits the company. It
involves judgment, thinking and measured action to allocate unalterable distribution of capitals
with the determination of reaching a preferred objective. It also has its essence in economic
theory include ascription of meaning, information seeking and subsequent execution action.
Eventually, the purpose of decision making is to lessen uncertainties among what actually occurs
and what was estimated to occur. Cost, time and scope are the main fundamentals of any project.
This three constrictions is certain to affect the task’s outcome. Over decision making it is not
essential to plot for risks however reality check can ensure the correct path to be taken.
Discussion
Project kick-off meeting
It is essential for this project to get a successful start for focusing on real issue and aware
of peculiarities of stakeholders (Ford and Richardson 2013). According to one experienced

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project manager how the team will work totally depend on the first team meeting tone if it is
disorganized or bogged down could lead to self-subsequent implementation action. Allotment a
good kick off meeting is an effective way to embark at the beginning of a project subsequent
application action (Xu 2015). There are mainly three objectives managers try to accomplish in
first meeting.
1. First, the chances will be explored of implementing both in housing and cloud
deployment ion.
2. Second, the cost and other analysis will be considered to check the company benefits.
3. The third and most important objectives is to choose the correct platform and proceed.
Handling uncertainty in Capital Investments
A cost investment project evolution needs initial variables like product values and initial
capital expenditure and ongoing operating expenditures including construction prediction over
the financial lifespan of the project and suitable period of equipment or services (Yu 2013).
Some of the variables can be estimated by analyzing the current situation and have a little
uncertainty. Other variables may have higher uncertainty and lack of relative confidence. Many
methods with changeable degrees of complexity are recycled in organization for handling
improbability in assets investment judgments.
1. Sensitive analysis- sensitivity analysis can be referred as technical indication of
probability in a project. This analysis begin with base case situation using input variables
and analyzing the change of specific percentage below and above expected value
(Busenitz and Barney 2017). Example, for in housing facilities company needs to pay the
IT employee every month and in other hand the also have to pay the cloud service
provider. For each variables the investment will vary in different manner like there will

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be 1000 dollar/ per month needs for in housing facilities while in cloud the 800 dollar
will be more than enough.
2. Scenario Analysis – It is the technique to reflect investment profitability and the range of
likely variable values. In scenario analysis circumstance such as less recovery, lower
production, higher production cost are compared and calculated (Endsley 2017). There
are mainly two types of scenario as bad scenario and good scenario. For In housing
facilities company needs more space but in cloud there is no space needed as the service
provider will take the responsibility of managing and monitoring.
3. Computer simulation – From above probability analysis of each variables are combined
and in a computer simulation. The outcome as effectiveness of the profitability quantity is
has been determined for each combination (Orlovsky 2013). Hundreds of randomly
generated combinations for each variable are normally analyzed.
Classification of Decision Situation
The type of information available for a project is responsible for evaluating the decision
for decision maker such types can be 1. Certainty 2. Risk 3. Uncertainty. When complete
information of the situation is available then the decision situation is referred to as decision
under certainty. If the decision alternatives under consideration is expected in several probable
outcomes and the probability of each outcomes can be assessed such decision situation is under
risk. Example of certainty, as the company is growing the data is growing gradually too and to
store this vast amount of data in housing facilities they need to store data manually and also
need to update the hardware and software from time to time. In case of cloud this issue is
avoidable because the service provider is fully responsible for monitoring and manage those
data. Uncertainty data loss occur at any time in inn-house facilities it is nearly impossible to

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collect this data this could be define as risk. In other hand the managers has no idea of the
probabilities for each possible outcome the decision is considered as uncertainty. In the past the
risk and uncertainty considered similar as distinguishable entities.
Terminology Used in decision Analysis
Storing data is not a difficult, the dare is to store data reliably and securely so can be revealed
and analyzed dominant insight for improved decision making and stay up to date (Gupta,
Seetharaman & Raj, 2013). Groups need to choose suitable platform that can store data such as
product, customer data and supplier data. Decisions will be made after analyzing followed facts:
 Cost efficiency- in-housing facilities has some drawbacks as the implementing storage
system is extremely expensive as the software and hardware needs to supplant time to
time for updated sorting systems and increasing amount of data.
 Lack of Understanding – for appropriate analyze and store dynamic data vast amount of
understanding is needed. While in cloud there is no need of understanding as service
provider will take care of most things.
 Vulnerabilities- one of the main aspects of good storage system is security. Cloud can
lack the security issue while in-housing

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Decision making process order
Requirement cloud Benefits
 To manage, centralize and growing
availability of cross agency
information and greater contact to data
and results in more effective decision
making.
 Security issues may be solved using
cloud in efficient manner. In old
legacy system the investment is high
for receiving an acute security
organization.
 Availability is necessary to upsurge in
both course to retrieve and store the
same data.
Cloud is the key to achieve this goals as its
provide variety of reasons as follows-
 Cloud guarantees cloud solutions such
approved personal access across the
organization.
 Cloud will confidently expand the data
center consolidation labors.
 Using cloud to amalgamation data will
enable the availability of data as it can
be access from anywhere.
Organizational
alignment
Measurement
and
accountability
Planning
execution and
intervention
strategy
Efficiency
variables conclusion

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Conclusion
Decision making is very critical section of business as some decisions are easy to make
and can be done rapidly without much time and struggle in decision making process. Other in
critical situation needs substantial consideration of the circumstances surrounding the decision.
As we discussed in the report cloud is preferable than in-housing because that need lake of
monitoring and management also cost efficient. The company can save lot of their budget
investment as they do not need to invest on purchasing, managing and update software and
hardware. This spontaneously reduce the cost of contracting employees who would perform
these responsibilities in an in-house site.

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References
Busenitz, L.W. and Barney, J.B., 2017. Differences between entrepreneurs and managers in large
organizations: Biases and heuristics in strategic decision-making. Journal of business
venturing, 12(1), pp.9-30.
Criminisi, A. and Shotton, J. eds., 2013. Decision forests for computer vision and medical image
analysis. Springer Science & Business Media.
Endsley, M.R., 2017. The role of situation awareness in naturalistic decision
making. Naturalistic decision making, 269, p.284.
Ford, R.C. and Richardson, W.D., 2013. Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44). Springer,
Dordrecht.
Hui, L. and Nicolis, A., 2014. Equivalence principle for scalar forces. Physical review
letters, 105(23), p.231101.
Mota, D.F. and Shaw, D.J., 2017. Evading equivalence principle violations, cosmological, and
other experimental constraints in scalar field theories with a strong coupling to matter. Physical
Review D, 75(6), p.063501.
Orlovsky, S.A., 2013. Decision-making with a fuzzy preference relation. In Readings in Fuzzy
Sets for Intelligent Systems (pp. 717-723).
Power, D.J., Sharda, R. and Burstein, F., 2015. Decision support systems. John Wiley & Sons,
Ltd.

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Velasquez, M. and Hester, P.T., 2013. An analysis of multi-criteria decision making
methods. International Journal of Operations Research, 10(2), pp.56-66.
Wakker, P.P., 2013. Additive representations of preferences: A new foundation of decision
analysis (Vol. 4). Springer Science & Business Media.
Xu, Z., 2015. Uncertain multi-attribute decision making: Methods and applications. Springer.
Yu, P.L., 2013. Multiple-criteria decision making: concepts, techniques, and extensions (Vol.
30). Springer Science & Business Media.