Modeling and Its Importance to the Decision Making Process in Business

898 words 4 pages
Modeling and Its Importance to the Decision Making Process in Business

Modeling and Its Importance to the Decision Making Process in Business

CIS 331 System Modeling Theory

Modeling and Its Importance to the Decision Making Process in Business

When we refer to models, often times we picture a model as being something that is tangible, two or three dimensional, and a miniature replica of how we imagine a particular project. However, models can be used in practical everyday aspects of our lives when making major decisions. Models play an important role in relation to management decision making because modeling in business often provide management with a better insight to make proper decisions. Modeling provides management the
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(Powell & Baker, 2009, p.4) The primary the vehicle for implementing models in the business world is through the use of spreadsheets. The spreadsheet allows the problem-solver to “build a more detailed and more complex model” all while serving as a mathematical model
Modeling and Its Importance to the Decision Making Process in Business

that allows the designer flexibility, efficiency, and sophistication of mathematical tools used to tackle several modeling task presented in decision making management. (Powell & Baker, 2009, p.4) Using several add-in tools offered when using spreadsheets serve as vehicle as well when implementing modeling such as scenarios, solver, regression analysis, and etc.
To conclude, models can be used to improve decision making because models allow for the decision maker to maximize/minimize on the possible positive or negative outcomes of a given problem by examining all ends of the spectrum. Models also improve decision making because it allows for the modeler to help save valuable time and money on projects that may or may not work in favor of the business at hand. Models also help to improve product development cost and quality by allowing for the modeler to be experimental in testing different scenarios or options to produce the most effective quality product again saving time and money as well as a possible life given the situation.

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