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 7/1/2016 Information Technology 1 1. D-I-K-A Model Concepts 7/1/2016 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 2 D-I-K-A Model 7/1/2016 Information Technology 3 2. What is uncertainty? Uncertainty Certainty Known Law-like Sure Clear Predictable Absolute Simple Stable 7/1/2016 Information Technology Unknown Chaotic Unsure Vague Random Provisional Complex Turbulent 4 3. How do we create certainty? Method Benefits Limitations Gut Instincts Authorities Experiences Reasoning Testing 7/1/2016 Information Technology 5 4. What are the basic types of uncertainty? Perceiving Deciding Acting 7/1/2016 Information Technology 6 a. Perceiving uncertainty Social Factors Prevailing ideology Mass media Opinion leaders 7/1/2016 Individual Factors Contextual clues Past experiences Organizational schemas Information Technology 7 b. Making decisions Social Factors Group norms Language choices Information systems Individual Factors Stress Heuristics 7/1/2016 Representativeness Availability Anchoring Risk management predisposition Overconfidence Information Technology 8 c. Acting when uncertain Social Reward & punishment structures Option framing 7/1/2016 Individual Cognitive dissonance Fear Information Technology 9 5. How comfortable are people with uncertainty? "I am comfortable with uncertainty." 13% 5% 12% 18% 20% 23% 7/1/2016 9% Information Technology Strongly Agree Moderately Agree Slightly Agree Neutral Slightly Disagree Moderately Disagree Strongly Disagree 10 Comfort (cont’d) Uncertainty Modes 14.8 16 Acting 21.6 22.2 Perceiving 0 Females Males 20 20.5 Deciding 5 10 15 20 25 Degree of Embracing Uncertainty 7/1/2016 Information Technology 11 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 7/1/2016 Information Technology 12 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. 7/1/2016 Information Technology 13