Decision Production- A Step Toward a Theory of Managerial Information Requi rements

The lack of a general theory of managerial information requi rements is proposed as an underlying cause of the many MIS failures. This paper takes a first step toward developing such a theory. Viewing decision making as a production process (decisions being produced in much the same manner as normal goods or services), microeconomic concepts are employed to provide descriptive and normative guidance for the development of MIS. INTRODUCrION which further research can be based. Although each of the decision theories Successes notwithstanding, millions of indicates different views of how decidollars have been wasted in trying to sion making is performed (intuitively, develop information systems to enhance rationally, politically, etc.), there managerial decision making. The view seems to be a common notion of what here is that a major reason for these must be done, that is, the tasks infailures is the lack of a general volved. These tasks, then, can serve theory of managerial information reas the common research thread. qui rements establ ishing the rel atlonships between the information provided Research relating to decision tasks to management and the resulting decihas tended to gravitate toward framesions (Cooper and Swanson, 1979). works which include such tasks as noticing or searching for environmental The purpose of this paper is twofold. signals, identifying a problem reAs a first step in developing a genquiring a decision, understanding the eral theory of managerial information problem, generating or discovering alrequi rements, a production theory of ternative courses of action, and managerial decision making is introchoosing the appropriate course Of duced, and its appl icability is idenaction (e.g., Keen 1977, Mintzberg, et tified. As a second step, the potenal. 1976, Simon 1960). Using these detial of this view for enhancing the cision making tasks as the common analysis of managerial Information rebase, we propose a view of decision qui rements i s expl ored. making which can encompass the polltical, rational, etc. decision theories. A logical source of help in devel oping Decision making can be thought of as a this theory is the decision making production process in which decision literature; however, a problem arises tasks are performed by resources such, in choosing among competing descripas managers, staff, computers, etc. tive and normative theories. An alterThe exact functional relationships benative to wrestling with this choice tween resources (inputs) and decisions is to identify a common thread on (outputs) may be in accord with any or