Chapter 2 Understanding Local Networks
Chapter 2 Understanding Local Networks
Unit I
CHAPTER II: UNDERSTANDING LOCAL NETWORKS
Lesson Objectives:
Motivational Activity:
Write a short response about the quote:
“THE INTUITIVE MIND IS A SACRED GIFT AND THE RATIONAL MIND IS A
FAITHFUL SERVANT. WE HAVE CREATED A SOCIETY THAT HONORS THE
SERVANT AND HAS FORGOTTEN THE GIFT.”
- ALBERT EINSTEIN
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Analytical
Implications
Framework Collection Analysis
(What does it
(Define the (What are the (What do the
mean for the
decision or facts?) facts mean?)
decision?)
purpose)
Researchers have identified a variety of common biases that can enter into the process of analysis.
These includes the following:
Escalating Commitment.
-this is where executives commit more and more resources to a project even when they receive evidence
that it is failing. The more rational move would be cut to move your losses and run.
Groupthink.
-this occurs when a group decision-makers (such as a senior management team) embarks on a
poorly determined course of action without thoroughly questioning the decision’s underlying
assumptions.
Illusion of control.
-this is an individual’s tendency to overestimate his/her ability to control events.
The prior hypothesis bias.
-individuals who have strong beliefs about the relationships between variables tend to make
decisions on the basis of these beliefs even when presented with analytical evidence that
contradicts them.
Simplification
-this is where individuals use simple examples to make sense of not-so-simple problems.
Oversimplifying complex problems is dangerous and can mislead an organization into making
bad decisions.
Representativeness.
-this is a bias that violates the statistical law of large numbers. Individuals often display a
tendency to generalize from small samples (such as their experience) to explain a larger
phenomenon or population.
What does it take to successfully perform analysis?
STRATEGIC ANALYSIS
According to BNET, business dictionary the process of conducting research on the business
environment within which an organization operates and on the organization itself, in order to
formulate strategy.
SWOT analysis
Is a simple but widely used tool that helps in understanding the strengths, weaknesses,
opportunities and threats involved in a projector business activity.
PEST analysis
Is a scan of the external macro-environment in which an organization exists.
› Political factors, Economic factors, Social factors and Technological factors
Value chain analysis
-Is based on the principle that organizations exist to create value their customers. In the
analysis, the organizations activities are divided into separate sets of activities that add
value.
There are three important considerations in evaluating the role of each activity in the value
chain.
Company mission – this influences the choice of activities an organization
undertakes.
Industry type – the nature of the industry influences the relative importance of
activities.
Value System – this includes the value chains of an organization’s upstream and
downstream partners in providing products to end customers.
Sentiment analysis
-Also called as opinion mining, has been one of the most active research in natural language
processing since early 2000.
-The aim of sentiment analysis is to define automatic tools able to extract subjective
information from texts in natural language such as opinions and sentiments.
Intuitive thinking
Is a process that gives us the ability to know something directly without analytic reasoning,
bridging the gap between the conscious and no conscious parts of our mind, and also
between instinct and reason.
Intuition –is limited where the task is complex and uncertain, where the observer lacks
experience, or the observation is distorted by biases or fixed ideas.
Analytical thinking
It is focused, sharp, and linear, deals with one thing at a time, contains time, is
deconstructive, contains no perspective, is subject to disorientation, is brain centered, and
tends to the abstract.