In analyzing a business problem, after we have defined our decision problem, we must ask three critical questions:
- What do you want to achieve?
- What are the capabilities and competencies?
- What is the competitive environment like?
What do you want to achieve: When looking at what we want to achieve, we establish what our objective is. The objective is usually the opposite of the problem. Once we have defined the objective, we look at the different alternatives available.
What are the capabilities and competencies: Before selecting an alternative, we must look at the different alternatives available and evaluate each alternative using the criteria selected. We also consider the pros and cons of each alternative in order to make an informed decision.
What is the competitive environment like: understanding the competitive environment during the decision making process enables us make trade-offs. After considering the pros and cons of the different alternatives, we are able to choose the alternative most suited to solve the problem.
