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    The Internet in Decision Making at The Strategic, Tactical and Operational Levels

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    Alex Norton
    The document discusses three levels of decision making and how the internet impacts each level: 1. Strategic, tactical, and operational levels of decision making and how the internet provides information for each. 2. How engineering and revenue decisions can sometimes conflict, with engineering focusing on functionality and revenue focusing on usability from the user's perspective. 3. Key areas of internet science that influence decision making, including information management, machine learning, large-scale computing, cognitive psychology, and microeconomics.

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    The Internet in Decision Making at The Strategic, Tactical and Operational Levels

    Uploaded by

    Alex Norton
    47 views15 pages
    The document discusses three levels of decision making and how the internet impacts each level: 1. Strategic, tactical, and operational levels of decision making and how the internet provides information for each. 2. How engineering and revenue decisions can sometimes conflict, with engineering focusing on functionality and revenue focusing on usability from the user's perspective. 3. Key areas of internet science that influence decision making, including information management, machine learning, large-scale computing, cognitive psychology, and microeconomics.

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    The document discusses three levels of decision making and how the internet impacts each level: 1. Strategic, tactical, and operational levels of decision making and how the internet provides information for each. 2. How engineering and revenue decisions can sometimes conflict, with engineering focusing on functionality and revenue focusing on usability from the user's perspective. 3. Key areas of internet science that influence decision making, including information management, machine learning, large-scale computing, cognitive psychology, and microeconomics.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    47 views15 pages

    The Internet in Decision Making at The Strategic, Tactical and Operational Levels

    Uploaded by

    Alex Norton
    The document discusses three levels of decision making and how the internet impacts each level: 1. Strategic, tactical, and operational levels of decision making and how the internet provides information for each. 2. How engineering and revenue decisions can sometimes conflict, with engineering focusing on functionality and revenue focusing on usability from the user's perspective. 3. Key areas of internet science that influence decision making, including information management, machine learning, large-scale computing, cognitive psychology, and microeconomics.

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    of 15

    1.

    The Internet in decision making at the strategic, tactical and operational levels

    Strategic: At this level, company management will be looking to high level strategic decisions concerning the whole organisation, such as the size and location of manufacturing sites, partnerships with suppliers, products to be manufactured and sales markets. Tactical: For this level the information needed is for medium term decisions (few months-year), for example cash ows, allocation of resources within departmental budgets, and midterm forecasting and scheduling. Operational: Decisions at this level are made each day and are about control of the inventory and production levels, pricing decisions, cash controls, treatment of personnel etc. These are highly detailed information almost exclusive in each organisation.

    Example: IBM

    Over the past three decades, operations research groups within the IBM Research Division have conducted numerous analytic studies and developed many applications across the global IBM enterprise. During the last decade, IBM Research has extended its model of research to include work with IBM's customers. Bringing IBM scientists and customers together to tackle real-world business problems has advanced the application of information technology as well as the underlying science and mathematics.

    In recent years the Internet has made a huge impact on value chain design:

    Customer behavior. Largely due to the Internet, consumers are becoming more informed and demanding. Collaboration. The Internet has changed the way that companies connect with customers, partners, dealers and employees. Service velocity. Internet communication mechanisms speed orders through the supply chain at incredibly high rates.

    In recent years the Internet has made a huge impact on value chain design:

    Product velocity. The expectation of rapid change coupled with real technological advance drives a rapid turnover of products Flexibility. E-marketplaces offer businesses signicantly increased options in the selection of suppliers and customers. Globalisation. For global companies the Internet represents an opportunity to optimise across geographies, plants, shipping costs, labor, tariffs, processes and customers.

    2. Engineering and revenue decisions

    An engineering decision reects the outlook of the engineer themselves their perspective of a perfect system which they believe meets the criteria set to them. A revenue decision instead reects upon the usability aspect and so is from the perspective of the user.

    To understand this better:



    If an engineer has been set the proposal of creating a secure website, they may implement security features such as captcha. This is an engineering decision as he has met the proposal set to him he has implemented security. While this system is now secure, they may be pitfalls in its use if the captcha feature is confusing, hard to understand, repetitive and so on, there is the added chance that customers may become frustrated and leave the page. This can ultimately mean that despite the feature meeting its purpose, from the users perspective it is more obstructive than useful. This loss of customers results in revenue decisions where money is lost.

    In the end its all about nding the balance.

    3. Areas of internet science and decision making

    Information management and retrieval



    Wikis Knowledgebases Internal/external databases

    Machine learning

    Models Simulations

    Large scale computing



    Data processing Trend analysis Scalable systems

    Cognitive psychology

    Behaviour Site design Online shopping Tactical decisions Marketing Engagement Advertising

    Microeconomics

    Dynamic pricing Reacts to changes in the market Airline tickets Google Adwords Experiments

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