Business Performance Management: Decision Making Process

Describe how the system of the case study could support each of the decision-making phases of intelligence, design, and choice for the decision-makers. Explain the phase. Explain how the KBS supports or could support the phase for this case.

Simon’s decision making process consists of 3 phases which are Intelligence, Design and Choice. These phases can be used to simplify the assumptions, validate the models which are being used in the project and to verify, test the proposed solution. These phases are then followed by the Implementation phase after which the success or failure of the proposed system can be judged.
Intelligence phase consists of organizing the objectives, collection of data, Identifying and formulating the problem, problem ownership which helps to achieve a decision statement. The case study of Idaho Transportation Department follows the tax rule of charging high on the weight-distance tax and low for the registration fee for motor vehicles travelling on the highway. It has received repeated request for changing truck tax system. To process these repeated requests a few questions must be answered like how much revenue will be lost or gained? Taxes classification based on truck size? Behavioral and economic impact on taxes system? These issues must be answered so that the request can be processed further.
The next phase is the Design phase where we can classify the decisions, set a criteria, formulate a model, predict and measure the outcomes. We can breakdown all the broad categories into several options which can be related to that problem statement to give an appropriate decision. For this case study we can classify the above questions with Motor Carrier Taxation KBS(MCTKBS) as it comprises of over 200...

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...s for which the convenience registrations where done by paying an amount of 180$ per truck were either driven less miles or no miles in Idaho. The officials of the Idaho department suspected that some of these convenience registrations will be eliminated if the registration fee of the motor carriers are increased significantly. Assessment of tax effect should also be done if all the trucks travelling a lesser number of miles were assumed not to register. The decision of the implementation of the proposal is taken by considering all these factors so that the impact of these changes will not have an effect on the tax revenues and the state’s economic system.
BPM is a continuous process which happens in a closed loop structure which is useful to optimize the business performance or improve the quality of work based on the integrated data which is stored as a dashboard