Decision Analysis

Decision analysis is one of the 16 required techniques required for an effective business analyst. Decision analysis allows us to select a decision from a set of possible decision substitutions when ambiguities regarding the future exist. Stakeholders use decision analysis to examine a problem and make decisions in unreliable conditions.
The business analyst uses decision analysis to analyse different results in undefined or complicated circumstances.
Decisions are often challenging to analyse in the following situations:
• The problem is poorly described.
• The stakeholders don’t recognise why the primary action was taken.
• The environmental factors impelling the result are not fully comprehended.
• The conclusions of diverse circumstances are not understood by the stakeholders and so those results cannot be associated against one another.
There are various decision analysis methods and the chosen style varies on the degree of improbability, risk, value of information, and assessment criteria.
Decision analysis approaches use the following activities:
Top of Form
Bottom of Form
1. Choose alternative to implement: based on the result of the decision analysis the best solution is chosen.
2. Define alternatives: potential courses of action are identified.
3. Define problem statement: the problem is clearly described in this step.
4. Evaluate alternatives: the different approaches are analysed and
alternatives and evaluation criteria are chosen.
5. Implement choice: the chosen solution is implemented.
Some samples of decision analysis tools and methods include:
• analytical hierarchy process (AHP).
• comparison analysis.
• computer-based simulations and algorithms.
• decision tables.
• decision trees.
• force field analysis.
• multi-criteria decision analysis (MCDA).
• totally-partially-not (TPN).