Report: Decision Making and Analytical Thinking for UWS Services

This report provides an in-depth analysis of decision-making and analytical thinking, focusing on the case of UWS Technical Services. It explores the importance of decision analysis in business, emphasizing its role in providing effective solutions and directing correct decisions. The report discusses the application of decision analysis tools, including the simple multi-attribute rating technique, to evaluate software options based on various criteria. It also covers the challenges faced by UWS Technical Services, such as competitor analysis and defining decision problems with multiple objectives. The report further outlines the stages and outputs of the analysis, along with its strengths and limitations, providing a comprehensive overview of the decision-making process. Finally, it highlights the significance of decision analysis in achieving organizational goals and adapting to dynamic market changes. This report, contributed by a student, is available on Desklib.

ANALYTICAL THINKING
AND DECISION MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Importance of decision making and the application of decision analysis tools.................1
2. Defining decision problem involving multiple objectives.................................................4
3. Outlining and discussing various stages and outputs of the analysis.................................5
4. Strengths and limitations of the analysis .........................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
analytical thinking and decision making of an individual plays a crucial role that helps
to provide effective solution for the problems. Where in the report it has been discussed about
the decision making and its importance in an organisation which could lead to many
consequences that can be positive as well as negative and can create serious impact on the
surrounding of the economy. The following report discuses about various important values of
decision analysis which covers every factor that can influence the project in any way. It also
focuses on simple multi-attribute rating technique which is used to choose among the available
alternatives and helps to provide an effectiveness of project which depends on many criteria or
attributes. These attributes have to be judged with the five aspects which are specific,
measurable, achievable and realistic as well as time bounded (Cascetta and et. al., 2015). The
strengths and the limitation of a project have been discussed as well which are important for the
analysis of decision which has been made for satisfying needs, demands and expectations of
every customer.
1. Importance of decision making and the application of decision analysis tools
Decision analysis is very important for every business as it helps to provide the direction
for taking correct decision which can be beneficial for them in every aspect. It is the discipline
which can comprise of various theories, methodologies, philosophies and several professional
practices which can ultimately help the individual for addressing important decision regarding
any subject. In the case , UWS technical Services has provided option of three software having
different development costs and related effectiveness to the Audience Response System that
provides the equipment for higher education sector. And looking for this software which can
provide easy access of the software to the user through various web based application and apps
in the portable devices which are mostly opted the individuals. Therefore, UWS technology
services have provided several packages of software along with various costs which are
associated with it (Purohit,Tikariha and Kalia, 2018).
Various methodologies and use of many theories and principles would help company to
adopt the best possible software which could provide them accomplishment of goals and
objectives which they are aiming for. Decision analysis is a valuable process as it facilitates in
providing the knowledge or adopting the best project which would provide many benefits that
could lead to generate revenues in return and require less investment and maintenance cost which
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are the most essential aspects of choosing the plan along with keeping up a backup for associated
failure of chosen proposal by Audience Response System (Dahl, 2017). Now, the decision has to
be made in between the adoption of web based functionality or the app based system where both
require different requirements and varied costs associated. Main criteria for choosing any
proposal for this company is the package that has moderate cost associated with development of
project.
The importance of decision analysis includes the aspect of providing help for the ideal
representation of information which is given in a complex format can be simplified so that one
can analyse every related aspect deeply as it is very crucial to maintain because it results in
effective implementation of any chosen project in the practical format. Most of the decisions are
made by adopting methodology that helps to prioritise any kind of information according to
their importance which can provide the idea what should be a crucial factor that should be kept
in concern while other factors can be neglected as their impact might be not so strong. With
proper decision analysis, one can estimate and brainstorm several outcomes that can be generated
with the adoption of any proposal which are provided in a choice. It leads to achieve desirable
results which is the positive aspect of decision analysis. With respect to the particular decision,
one can also estimate the future consequences that would lead to prepare strategies for future
problems or crisis that can be generated with proposal in worst scenario. Various technological
companies have hired decision analytical specialist which focuses providing necessary
information from big data and facilitate process of making various business decisions which are
very important that lead to make an organisation more successful. Therefore, the process of
decision analysis is considered to be essential in present scenario as there are various dynamic
changes to which every company has to cope up in order to achieve stability in a market and also
resultant benefits.
As the decision making is an important aspect in a company which helps to decide the
adoption of particular path in order to accomplish the goals and objectives of an organisation.
This process provides access to certain exposure which could lead to production of a result
which is efficient and effective and can provide benefit to the organisation. With the effective
decision making, one can lead to make all the activities to be successful. It creates a sense of
coordination among the individuals as they provided a vision which could lead to formation of
successful processing of output which can satisfy the needs and requirements of various clients
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and thus, making it more beneficial for the company itself (Ergu and et. al., 2014). Session
making depends upon several factors such as the structure of an organisation, proper analysis of
related objectives and policies. Also, the analytical study of the options which are available for
the study along with it one has to take care of aspects such as time and cost effectiveness. It
particularly requires a flexible mind that can think creatively. It demands the chain of action
which can lead to provide them several solutions for the problems on which the decision has to
be make and therefore, a proper decision making regarding a particular aspect is important to
provide a solution which is beneficial to implement in every aspect that can also lead to
successful results which creates the advantageous situation for them in the market.
There are some of the theories related to decision making which are discussed as below:
Normative Decision Theory
This theory majorly focusses on the identification of best decision which shall be made
under an ideal decision maker who has the ability for computing the scenario with accuracy and
applying logical reasons to the problems.
Descriptive Decision Theory
It is regarded as the description of behaviours which are observed under the particular
assumptions of the agents which are there for decision making in the criteria of consistent rules.
Probability Theory
It states that all the rules which are related to decision making are completely equivalent
to Bayesian rule fro decisions while considering some of the utility functions and related
distribution
Decision analysis is made in certain situation such as uncertain decisions, consequences
and related objectives and preference. There are many factors which occur uncertainly and affect
the whole working of the organisation which is a serious issue that has to get solved and avoided
in order to provide successful implementation. It helps to make various strategies which can be
related to the formation of strategies which are required for handling the impacts created or
generated by them that have adverse impact on other implications of the project in the actual
market and can create a competitive advantage for the company for getting high preference as
compared to others by customers. To make particular project viable in every way, it is important
to analyse all the external and internal factors leading to impact an organisation. The feasibility
of the project is also calculated in the financial, technological and several terms which would
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provide success to the organisation in many terms. The decision making leads to effective
implementation of all the outcomes which are related to the certain project proposal.
Also these can be on the basis of Porter's five forces Model which is discussed as below
Bargaining power of a customer
(Moderate force)
The customers can have high bargaining power
as switching cost to another service provider is
very less.
Bargaining power of a supplier
(weak force)
As the firm has got the contract if they would
not be completing it , that can be given to other
competitors.
Threat of substitute (Strong force )
In the market there are many other agencies
which are providing the same services.
Rivalry (Strong force)
There are other firms which are providing the
same facilitates at affordable rates to customer
and can have a competitive edge.
Threat of New Entrance ( Weak force)
As already there are established customers
which provides a major disadvantage to those
new entrance.
Value chain analysis consist of all those operations which would be required fro
accessing those software packages in practical implementation such as operations relate to the
development and maintenance factors.
2. Defining decision problem involving multiple objectives
The major challenges which are faced by UWS technical services are discussed as below:
The main responsibility which come after short-listing was taking major decision that
was confusing with aspect of concentrating on development of proposal plan which was
demanded by client company. Also, they were having lack of knowledge about their competitors
which was also the major challenge to make a suitable strategy and plan which was required to
know their rival first and their past performances so that it would help them to provide
judgement related to the possibility of winning (Jelihovschi, Cardoso and Linhares, 2017).
Therefore, they have to consider fifty percent of winning possibility which leads to a vague idea
related to how the strategy should be made different from them. As it is very important to know
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one's rival that lead to facilitate the formation of strategies which can make the company to stand
above all and provide some varies and different solution for the same problem. There were
various factors associated with every proposal such as low development and maintenance cost
along with matching up with web based application and portable devices functionalities. Some of
the factors such as considering the department of finance, human resource and sales , where the
various financial expert will tell the adequate budget which would be required for investing in
these project and what should be the expected return on them , the HR will take the decisions
related to how many employees have to be recruited with required skill and the sales department
will determine the strategies which are needed to increase the4 selling of the services and
attracting more customers which would be required for gaining the profit over it.
Both these applications require more investment cost and also, their maintenance was
high. The estimation which was provided to them was not applicable in practical terms but to
grab these opportunities, they have to form proposals dependent on provided criteria for the
purpose of selection. Also, the feasibility aspects of those criteria was very less which was very
hard to achieve in order to make the project successful for the implementation. Therefore, they
planned a meeting with client organisation that provided them necessary information regarding
their expectations from both the shortlisted companies. With this, they decided to issue four
proposals that have various possibilities and provide full completion of particular goals and
objectives which are decided by panel of specialist for designing prototype of software for
implementation (Jolley, D.F. and et.al., 2016).
These four packages have different criteria and features varying from the highest
development package along with associated effectiveness which is very important to be
achieved. The package amount was in the range from £100,000 to as lowest which £50,000 is
and there should an option for a back-up plan which can be used at the time of crisis. The project
was important for UWS technical services as the awarded company will get £500,000 and the
cost of making the complete proposal will be £30,000 which will give them a benefit of huge
amount which every company desires for as it would provide them more opportunities in future
that would obviously be beneficial for them. Therefore, it was important for them to overcome
all challenges as it would affect the implementation of plan and its related aspects such as
effectiveness and efficiency. The problems cover all the financial and implementable aspects
which are related to formation of proposal which can be associated with it. It has also been
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observed that the formation of prototype related to a project which requires a lot of time to
collect all the related data and resources which can help to identify the planned structure of the
whole project which is very essential to provide an idea to the client on which the decision could
be made along with the several modification which can be provided in order to make it more
effective and preferable by client (Lee and Carlson, 2015). A client prefer those projects which
are easy to maintain because may be the developer of the software does not remains the same
which in turn in the case of complexity of the software, it really hard for other person to
understand the whole procedures therefore the complexity is maintained in order to make it
understandable to other individual also as the service.
3. Outlining and discussing various stages and outputs of the analysis
Multi attribute rating techniques is the methodology which is designed in order to provide
decision analysis on multiple criteria which is the most crucial aspect of the project or proposal.
It helps to evaluate several criteria or attribute that creates certain conflicts in the effective
decision making which can be related to any aspect. Attributes that creates conflicts are
considered as typical for evaluating various processes such as cost and price related to the project
which is most essential factor that every proposal maker keeps in mind along with the client who
prefer to have a feasible project which is easy to implement and also have low maintenance, also
providing effective solution for the problem and is highly adaptable to change. It helps to provide
an effective structure for the complex problem in an easy manner while considering many
criteria that can directly lead to the implementation of the whole project which can fulfil all the
expectations regarding the demanded project.
The following has many steps for solving the problem of the project proposal which is
generated. The multiple criteria has following steps which one has to follow:
The first step includes he selection of best alternative from the set of available options
which are provided to the specialist which he analyses individually that provides the chance for
selecting the best in order to make the project more efficient and can be evaluated against several
options. Secondly, an analysis is implemented on the problems which are related to the certain
scenario and provides solution for it accordingly (Mahmoud, Weiss and Habib, 2016).
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From that strength and weakness of the project is discussed which helps person to
evaluate all the losses and benefits which are associated with the implementation. The most
common technique which is applied for evaluation is discussed as below:
There are seven steps which are included for solving the problem. These are:
 The first step includes the identification of the decision maker. In this case the decision
maker was the panel of specialist which were there to determine the plan for the given
scenario. The second stage includes the issues which are related to the project and
specifically, utility which depends upon the purpose and context of the particular
decision. The main issue was the implementation of the development cost as they main
requirement in the context was it should be having less cost for implementation. The real
scenario was different as it was not practically possible to have less cost for development
and the installation of the whole project (Cottrell, 2017).
 Third step comprises of searching the alternatives for the solution as it was necessary to
find the best possible way which not only increase the chance of selection but also proves
to be an effective project.
PARTICULARS COST OF DEVELOPMENT
SOFTWARE A
£100,000
SOFTWARE B
£60,000
SOFTWARE C
£50,000
SOFTWARE D
£80,000
 Fourth step includes identifying various attributes which are related to given project that
covers all its limitations which can limit the scope of the project as in this the factors
were related to other competitor and the special conditions which are provided for
determination of a successful software.
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 Fifth step includes the assigning the values to the criteria of projects that would lead to
acknowledge the importance of each factor that is related to the provided proposal which
lead to determine the priority criteria for each factors and associated benefits and
disadvantage.
In the below mentioned table ranks are assigned to each criteria or location availa (1 = highly
preferred, 5=least preferred)
Factors
resleated to
Softwares
Efficiency Maintenance Development Accuracy Reliability
SOFTWAR
E A 2 4 4 3 4
SOFTWAR
E B 1 1 3 4 1
SOFTWAR
E C 4 2 2 1 2
SOFTWAR
E D 3 3 1 2 3
SOFTWARE A SOFTWARE B SOFTWARE C SOFTWARE D
0
0.5
1
1.5
2
2.5
3
3.5
4
2
1
4
3
4
1
2
3
4
3
2
1
Illustration 1: Graph Representing four Software
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 Sixth step includes providing weight age for every criteria which was very important. The
dimension which is most important are assigned with the ratio of 100 and further with the
respective ratios, also with this the ratios which are provided is checked that helps
various specialist to concentrate on those factors which are assigned heavy weight
(Marttunen, Lienert and Belton, 2017).
Weight of
criteria Attributes of Sourcing software
Attributes Weight
SOFTWARE
A
SOFTWARE
B
SOFTWARE
C
SOFTWARE
D
Efficiency 12 20 10 40 30
Maintenance 15 40 10 20 30
Development 18 40 30 20 10
Accuracy 21 30 40 10 20
Reliability 24 40 10 20 30
Aggregate 18 34 20 22 24
Attributes Original Weights Normalise Weights
Efficiency 30 12
Maintenance 40 15
Development 110 18
Accuracy 50 21
Reliability 70 24
300 90
9
Efficiency
Maintenance
Development
Accuracy
Reliability

 The seventh step includes calculating the weight age which is provided to every attributes
such as its implementation cost, development cost and also the maintenance cost for
implementing any of the given software for that company.
 Eight step includes the activity of taking a particular decision which is based on various
facts and figures. In this among various software packages the client has to adopt a
package which can fulfil its requirement and demands.
SOFTWARE A
SOFTWARE B
SOFTWARE C
SOFTWARE D
 The ninth step includes performing the analysis which is related to sensitivity that
provides how vulnerable the project is to external changes. As the major vulnerability of
these software packages are they are needed to be maintained and updated properly on
time.
Weight of
criteria Attributes of Sourcing software
Attributes Weight SOFTWARE SOFTWARE SOFTWARE SOFTWARE
10
Efficiency
Maintenance
Development
Accuracy
Reliability
0
5
10
15
20
25
30
35
40
45
20
40 40
30
40
10 10
30
40
10
40
20 20
10
20
30 30
10
20
30
Illustration : Sensitivity Analysis graph