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The Role of Uncertainty in D-I-K-A Management

The Role of Uncertainty in D-I-K-A Management. Business isn’t complicated. The complications arise when people are cut off from information they need. Jack Welch. 1. D-I-K-A Model. Concepts Data = Representations of reality Info. = Data which provides relevant clues or news

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The Role of Uncertainty in D-I-K-A Management

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  1. The Role of Uncertainty in D-I-K-A Management Business isn’t complicated. The complications arise when people are cut off from information they need. Jack Welch Information Technology

  2. 1. D-I-K-A Model • Concepts • Data = Representations of reality • Info. = Data which provides relevant clues or news • Knowledge = The framework or schema for organizing the relationships between pieces of information. • Action = The deeds or decisions made based on knowledge Information Technology

  3. D-I-K-A Model Information Technology

  4. Certainty Known Law-like Sure Clear Predictable Absolute Simple Stable Uncertainty Unknown Chaotic Unsure Vague Random Provisional Complex Turbulent 2. What is uncertainty? Information Technology

  5. 3. How do we create certainty? Information Technology

  6. Perceiving Deciding Acting 4. What are the basic types of uncertainty? Information Technology

  7. Social Factors Prevailing ideology Mass media Opinion leaders Individual Factors Contextual clues Past experiences Organizational schemas a. Perceiving uncertainty Information Technology

  8. Social Factors Group norms Language choices Information systems Individual Factors Stress Heuristics Representativeness Availability Anchoring Risk management predisposition Overconfidence b. Making decisions Information Technology

  9. Social Reward & punishment structures Option framing Individual Cognitive dissonance Fear c. Acting when uncertain Information Technology

  10. 5. How comfortable are people with uncertainty? Information Technology

  11. Comfort (cont’d) Information Technology

  12. 6. So what? • More D-I-K-A can increase uncertainty • More D-I-K-A can decrease uncertainty • People tend to pay the most attention to D-I-K-A that decreases uncertainty and confirms preexisting beliefs (confirmation bias) • More data and information do not necessarily generate better decision-making but they make us more confident Information Technology

  13. So what? (cont’d) • Technologies impact the amount and distribution of D-I-K-A, which in turn, influences perceptions of uncertainty • Technologies perceived as producing too much uncertainty tend to be resisted (compatibility attribute) • Increasing the D-I-K-A cycle time can increase perceptions of an innovation’s adaptability. Information Technology

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