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Structure and analysis of IS decision-making processes

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European Journal of Information Systems

Abstract

Decisions to invest in information systems (IS) are made by many organisations on a very regular basis. Such decisions can vary from quickly identifying the problem, screening options and choosing a solution in a very straightforward way, to very extensive and repeated search, screen, design and negotiation activities that can take many years. There has been little explicit research into the process by which managers and organisations decide to develop IS applications. This research addresses this by analysing 20 IS decision-making processes, using a phase-based as well as an attribute-based approach. Mintzberg's typology is used to characterise seven types of IS decisions from a phase-based or process-based perspective. For the attribute approach, the decisions have been analysed on the basis of subjective/objective and offensive/defensive contrasts and placed in one of the four following categories: innovative, rational, necessary or political. The paper concludes by identifying five factors that result in major differences in IS decision-making processes. These issues are: (1) whether there is scope to design a solution; (2) whether distinct alternatives have to be searched for; (3) the degree of urgency and necessity from the perspective of the decision-makers; (4) whether the decision can be subdivided in order to follow a gradual process path (planned vs incremental) and (5) the number and power of stakeholders involved in the process and the extent that their interests vary and contrast. The paper suggests that managers deciding on IS applications should be aware of these factors in order to design a process that fits best with the specific circumstances: no single process should be considered universally applicable. This conclusion is in contrast with many decision-making models rooted in the MIS-field, which suggest to use prescriptive and rational approaches to organise IS decision-making processes.

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Acknowledgements

I thank the editors and reviewers for their helpful comments on earlier versions of this manuscript.

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Correspondence to Albert Boonstra.

Appendix A Research and interview questions

Appendix A Research and interview questions

Stimulus

Can you describe the IS-related problem that led to a decision?

What was the initial stimulus?

Were the stimuli frequent or intense?

Alternatives

Were there one, few or many alternatives available?

Were the alternatives: (1) ready-made, (2) was modification needed or (3) was design needed?

Did the participants explicitly define alternatives before making the decision?

Process

Can you describe the chain of events that led to the final decision?

What was the duration of the decision-making process from formal identification to authorized decision?

Politics

Which individuals, parties and stakeholders were involved in this decision?

Were there differences in insight and opinion?

Did the participants have conflicting interests?

Was one party dominant due to expertise or power?

How diverse and intense were these conflicting interests and how were they expressed?

Can the process be characterised by negotiations and use of power among various participants?

Was the process of arriving at the decision delayed due to differences of interests among participants?

Rationality

Was the decision process consciously planned by management?

Did management use formal planning methods?

How extensively did the participants look for information in making this decision?

How was the correctness of the decision judged? For example, on hard criteria such as cost–benefit analyses and sales figures or on subjective and soft criteria such as image and reputation?

Was it necessary to make this decision?

Did external forces influence decision-making?

Will the decision affect the competitive position of the company?

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Boonstra, A. Structure and analysis of IS decision-making processes. Eur J Inf Syst 12, 195–209 (2003). https://doi.org/10.1057/palgrave.ejis.3000461

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