Page 80 -

79
Q2-3 What Are the Four Primary Purposes of Collaboration?

work product for the decision, evaluate that product, and make revisions in an iterative fashion—
the essence of collaboration.
Strategic Decisions

Strategic decisions are those that support broad-scope, organizational issues. Typical decisions
at the strategic level are: Should we start a new product line? Should we open a centralized ware-
house in Tennessee? Should we acquire company A?
Strategic decisions are almost always collaborative. Consider a decision about whether to
move manufacturing operations to China. This decision affects every employee in the organiza-
tion, the organization’s suppliers, its customers, and its shareholders. Many factors and many
perspectives on each of those factors must be considered.

The Decision Process
Information systems can be classified based on whether their decision processes are structured or
unstructured. These terms refer to the method or process by which the decision is to be made, not
to the nature of the underlying problem. A structured decision process is one for which there
is an understood and accepted method for making the decision. A formula for computing the
reorder quantity of an item in inventory is an example of a structured decision process. A stan-
dard method for allocating furniture and equipment to employees is another structured decision
process. Structured decisions seldom require collaboration.
An unstructured decision process is one for which there is no agreed-on decision-making
method. Predicting the future direction of the economy or the stock market is a classic example.
The prediction method varies from person to person; it is neither standardized nor broadly
accepted. Another example of an unstructured decision process is assessing how well suited an
employee is for performing a particular job. Managers vary in the manner in which they make
such assessments. Unstructured decisions are often collaborative.

The Relationship Between Decision Type and Decision Process

The decision type and decision process are loosely related. Decisions at the operational level tend
to be structured, and decisions at the strategic level tend to be unstructured. Managerial decisions
tend to be both structured and unstructured.
We use the words tend to be because there are exceptions to the relationship. Some operational
decisions are unstructured (e.g., “How many taxicab drivers do we need on the night before the
homecoming game?”), and some strategic decisions can be structured (e.g., “How should we assign
sales quotas for a new product?”). In general, however, the relationship holds.

Decision Making and Collaboration Systems
As stated, few structured decisions involve collaboration. Deciding, for example, how much of
product A to order from vendor B does not require the feedback and iteration among members that
typify collaboration. Although the process of generating the order might require the coordinated
work of people in purchasing, accounting, and manufacturing, there is seldom a need for one
person to comment on someone else’s work. In fact, involving collaboration in routine, structured
decisions is expensive, wasteful, and frustrating. “Do we have to have a meeting about everything?”
is a common lament.
The situation is different for unstructured decisions because feedback and iteration are crucial.
Members bring different ideas and perspectives about what is to be decided, how the decision will
be reached, what criteria are important, and how decision alternatives score against those criteria.
The group may make tentative conclusions and discuss potential outcomes of those conclusions,
and members will often revise their positions. Figure 2-3 illustrates the change in the need for
collaboration as decision processes become less structured.