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Chapter 2  Collaboration Information Systems
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                                            These four  purposes build on each other. For example, making a decision requires  that  team
                                              members be informed. In turn, to solve a problem, the team must have the ability to make  decisions
                                            (and become informed). Finally, to conduct a project, the team must be able to solve problems (and
                                            make decisions and become informed).
                                               Before we continue, understand you can use the hierarchy of these four purposes to build
                                            your professional skills. You cannot make good decisions if you do not have the skills to inform
                                            yourself. You cannot solve problems if you are unable to make good decisions. And you cannot
                                            manage projects if you don’t know how to solve problems!
                                               In this question, we will consider the collaborative nature of these four purposes and describe
                                            requirements for information systems that support them, starting with the most basic: becoming
                                            informed.

                                            Becoming Informed

                                            Informing is the first and most fundamental collaboration purpose. Recall from Chapter 1 that two
                                            individuals can receive the same data but construct different interpretations or, as stated in the
                                            terms of Chapter 1, conceive different information. The goal of the informing is to ensure, as much
                                            as possible, that team members are conceiving information in the same way.
                                               For example, as you  read in  the opening scenario,  the  team at  Falcon Security has been
                                            assigned the task of investigating the 3D printing opportunity. One of the team’s first tasks is to
                                            ensure that everyone understands that goal and, further, understands the basics of 3D printing
                                            technology and what is required to implement it.
                                               Informing, and hence all of the purposes of collaboration, presents several requirements
                                            for collaborative information systems. As you would expect, team members need to be able
                                            to share data and to communicate with one another to share interpretations. Furthermore,
                                            because memories are faulty and team membership can change, it is also necessary to docu-
                                            ment the team’s  understanding of the information conceived. To avoid having to go “over and
                                            over and over” a topic, a repository of information, such as a wiki, is needed. We will say more
                                            about this in Q5.

                                            Making Decisions

                                            Collaboration is used for some types of decision making, but not all. Consequently, to understand
                                            the role for collaboration, we must begin with an analysis of decision making. Decisions are made
                                            at three levels: operational, managerial, and strategic.
                                            Operational Decisions

                                            Operational decisions are those that support operational, day-to-day activities. Typical opera-
                                            tional decisions are: How many widgets should we order from vendor A? Should we extend credit to
                                            vendor B? Which invoices should we pay today?


                                            Managerial Decisions
                                            Managerial decisions are decisions about the allocation and utilization of resources. Typical
                                            decisions are: How much should we budget for computer hardware and programs for  department
                                            A next  year? How many engineers should  we assign  to  project B? How many square feet of
                                              warehouse space do we need for the coming year?
                                               In general, if a managerial decision requires consideration of different perspectives, then
                                            it  will  benefit from collaboration. For example, consider  the decision of  whether  to increase
                                            employee pay in the coming year. No single individual has the answer. The decision depends on an
                                            analysis of inflation, industry trends, the organization’s profitability, the influence of unions, and
                                            other  factors. Senior managers, accountants, human resources personnel, labor relationships
                                              managers, and others will each bring a different perspective to the decision. They will  produce a
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