Essays on Decision-Making Process in AppleCo Case Study

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In general, the paper "Decision-Making Process in AppleCo" is a good example of a management case study.   In AppleCo business enterprise, Tom Crook the Chief Information Officer (CIO) has decided to adopt Enterprise resource planning (ERP) system so as to improve the overall productivity of the organisation. Apparently, Crook desire to use ERP system as a tool to assist in enhancing the supply chain network and performance level so as to reduce the cycle times plus he understands that ERP systems can be used to integrate core business functions like finance, logistics, and human resource.

With the drastic development in the commercial setting, AppleCo continues to endure diverse challenges, and so Crook believes that integration of ERP with business practices will improve the situation. Virtually, Crook makes hundreds of decisions per day; these decisions vary from inconsequential to the important, but most importantly the decision to adopt ERP means that the organisation will be knowledgeable about the information, from which it can base their choices among alternatives. The need to improve the decision-making process in AppleCo prompted the need for adopting an information system. Notably, ERP systems can assist Crook and workers assess situations by applying diverse paradigms types, while it stockpiles proficiency and makes it present to him when he needs them.

Presently, e-business technologies are changing business cooperation, and similar technologies have changed and enhanced decision activities. ERP systems provide latest, convenient information and assessment that are precise, reliable, and complete. Additionally, ERP systems according to Crook present information in a suitable format that is easy to comprehend and operate. It is worth claiming that AppleCo decision-making environment is decentralized and complicated with the support offered to the decision-makers such as Crook by the top management being more deprived.

However, Crook believes that adopting an ERP system will upgrade and expand AppleCo through the integration of novel technologies, processes and ultimately the overall performance. Analysis of the Decision Crook’ s ERP adoption decision is an epitome of a person acting with bounded rationality. Basically, bounded rationality is the decision making concept, whereby individuals’ rationality is restricted by the information they contain, of their minds’ the cognitive restrictions, as well as the limited amount of duration they have to decide (Spiegler, 2011).

Bounded rationality was proposed by Herbert Simon as an optional source for the decision making rooted in mathematical modeling, as utilized in economics as well as other related disciplines (Simon, 1955). Importantly, rationality is complemented as optimization, which according to Spiegler (2011), views the process of decision making as an entirely rational method of looking for an optimal alternative given the data accessible. Differently, bounded rationality can be seen when decision-makers such as Crook lack the resources and capability to attain the optimal result, they rather make use of their rationality just subsequent to having cut down the alternatives accessible (Jones, 1999).

Therefore, in this regard, Crook is a satisfier because he is the one looking for a satisfactory resolution instead of the optimal solution. According to Simon (1982), a number of human behavior models in the social sciences presume that individuals can be rationally estimated or illustrated as "rational" creatures. Besides that, scores of economics models presume that entities are generally rational, as well as can in big quantities be estimated to take action with regards to their tastes (Anderlini & Canning, 2001).

For this reason, the bounded rationality concept modifies this presumption to justify the fact that flawlessly cogent decisions are over and over again not viable in practice owing to the limited computational wherewithal accessible for making such decisions.

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