‘Kepner Tregoe method, realy map into Simon's four phase model ‘Even though ultimately a human decision maker is responsible for every decision, automated systems have evolved to help businesses make decisions more productively ‘and consistently. A complication in the business environment is that decisions offen mus, ‘be made frequently and rapidly, uilizing online information. Typically, these problems are highly structured, ‘The insurance industry was one of the frst 10 adopt such automated decision-making (ADM) technology, It uses ADM in underwriting, bot utilizes rules-based technology. For details on ADM decision making, see Davenport (2004) and Indart (2005). We next turn to a detailed discussion of the four phases illustrated hy the MMS running case described in Online File W2.1. Note that Online File W2.1 has four distinct, pats, corresponding to Simon's four phases of decision making, 48 Parl + Computerized Decision Support Section 24 Review Questions 1. List and betly deserve Simon's four phases of decision making. 2 Why isa fith phase, evaluation, noe necessary? 3. What can cause a problem to exist in decision making? 2.5 DECISION MAKING: THE INTELLIGENCE PHASE Intelligence in decision making involves scanning the environment, ether intermittent. ly or continuously. It includes several activities almed at iclentifying problem situations ‘or opportunities. It may also include monitoring the results of the implementation phase of a decision-making process, (See the MMS running case situations in Online Problem (or Opportunity) Identi "The intelligence phase begins with the identification of organizational goals and objectives ‘elated to an issue of concer (e, inventory management, job selection, lack of or incorrect, Web presence) and determination of whether they are being met. Problems occur because of dissatisfaction with the stamas quo, Dissatisfaction is the result of a difference between ‘what people desire (or expect) and what i occurring, In this fist phase, a decision maker attemps to determine whether a problem exis, idenly is symptoms, determine is mage tude, and explicly define i Often, what is described as a problem (eg, excessive costs) may be only a symptom (Le, measure) of a problem (eg, improper inventory levels). Because real-world problems are usually complicated by many interrelated factors, it is sometimes difficult to distinguish between the symptoms and the real problem, as described in the MMS running case in Online File W2.1.1. New opportunities and problems certainly ication