Implementation MGS 3100

spreadsheet modeling alone is insufficient for truly affecting decision making in organizations because:spreadsheet modeling alone is insufficient for truly affecting decision making in organizations because: Inadequate modeling is just one of the reasons why decision-makers do not make good decisions.Inadequate modeling is just one of the reasons why decision-makers do not make good decisions. This chapter will cover critical oversights that users new to the concepts of modeling make in attempting to move forward to apply those ideas in actual decision-making situations.This chapter will cover critical oversights that users new to the concepts of modeling make in attempting to move forward to apply those ideas in actual decision-making situations.INTRODUCTION

WHAT, AFTER ALL, IS A MODEL? Remember the definition from the first chapter: A model is an abstraction of a business situation suitable for spreadsheet analysis to support decision making and provide managerial insights. Consider the following evolution of a model:

A Prototype Model CompleteDebugged Runable by Its Author Validated with Test Data Believed to Deliver Value An Institutionalized Model Sustained by the Organization Integrated into Organization's Decision Processes Coordinated in Function with Other Models and Systems Useable by Other Managers Maintainable and Extensible by Others Need Data Supplied and Maintained by Others Effort: 10X-100X Effort: 1X A Modeling Application Usable by a Client Manager Well Documented Hardened to Reject Unusual Data Inputs Extensible by Author or Client Manager Validated with Real-World Data Known to Deliver Value Effort: 10X An Institutionalized Modeling Application Effort: 100X – 1000X

This framework is a variation of one originally proposed by C. West Churchman, et. al. Modeler,ProjectManager,DecisionMaker,Client Curse of Player Separation ClientModeler Project Manager DecisionMaker The Separation of Players Curse

The Curse of Scope Creep Narrow Modeling Project Single Model Single Objective Focused Activity Few Players Few Stakeholders Low Effort Low Cost Low Development Risk Informal Coordination & Project Management Low Project Visibility Scale Diseconomies in Information Systems for Model Scale Diseconomies in Model & Database Maintenance Low Potential Organization- wide Impact Curse of Scope Creep Wide Modeling Project Multiple (Replicated) Models Multiple Objectives Diffused Activity Many Players Many Stakeholders High Effort High Cost High Development Risk Formal Coordination & Project Management High Project Visibility Scale economies in Information Systems for Model Scale Economies in model & Database Maintenance High Potential Organizational-wide Impact

Other Sources of Implementation Failure Easily addressed issues in modeling failure are model logic, model inadequacy, etc. However, political issues that arise from the use of a model are far more prevalent as a source of failure in modeling. When a model fails, it is all too common to blame the model when in fact, the inadequacies of the development and implementation of the model were at fault.

Other Sources of Implementation Failure con’t Loss of continuity either during the development of a model itself or later during implementation caused by departure of key players, or the loss of “organizational memory” Developing a modeling application before assessing issues of the data availability An infrastructure must be present (or be created) that guarantees that the data and systems will be maintained Shortcomings at one level of an organization as being caused by failures or inadequacies at a higher, often more abstract, level of the organization.