School of Computer Science and Informatics

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Browsing School of Computer Science and Informatics by Subject ", Bounded Rationality"

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    A Measurement Model of Value of Data for Decision Making in the Digital Era
    (Inderscience, 2020) Knahl, M; Sankaran, G; Siestrup, G; Vasileiou, Ismini
    Despite burgeoning opportunities for data-driven decisions, research shows that decision-makers are failing to make sense of data within a broader context of organizational change which presents the following pertinent questions: 1) how can decision-makers measure the value of data by giving a holistic account? 2) how should the organization-specific blending of Machine and human rationality be factored in the measurement model? This study tackles these questions by proposing a novel approach that combines system dynamics and the ability to incorporate data science methods. In addition to a conceptual description, this paper also describes a feasibility test conducted on a small-scale prototype set in a supply-chain context. The results show that the use of sophisticated models that have a local scope ("locally rational") might have unintended global consequences. It underscores the need for a holistic model in the decision-makers' toolkit providing the ability to run targeted simulations to assess digital investments.