A quantitative approach for modelling the influence of currency of information on decision-making under uncertainty. Issue 1 (2nd January 2016)

• Record Type: Journal Article
• Authors: Heinrich, Bernd; Hristova, Diana
• Is Part Of: Journal of decision systems. Volume 25:Issue 1(2016)
• Page Start: 16
• Page End: 41
• Publication Date: 2016-01-02
• Subjects: information quality -- decision-making -- metric for currency -- value of information -- customer relationship management; Decision support systems -- Periodicals; Management information systems -- Periodicals; Information resources management -- Periodicals; Information storage and retrieval systems -- Periodicals; Management -- Communication systems -- Periodicals; Decision support systems; Information resources management; Information storage and retrieval systems; Management -- Communication systems; Management information systems; Periodicals; 658.40305
• DOI: 10.1080/12460125.2015.1080494
• Languages: English
• ISSNs: 1246-0125

Abstract

Abstract : Stored information, used to support decision-making, can be outdated. Existing metrics for currency provide an indication about the correspondence between this stored information and its real-world counterpart. In the case of low currency, this information cannot be effectively used to support decision-making, although the decision-maker can probably learn from it. Our first objective is to develop an extended metric referring to currency, which provides an indication about the real-world information at the time of measurement, based on the stored information. Thus, the decision can be adjusted and the value of the stored information increased. Therefore, as a second objective, we propose a quantitative approach for modelling the influence of currency on decision-making by extending the normative concept of the value of information. Finally, we demonstrate the relevance of our approach by applying it to two real-world scenarios from the field of sales management in customer relationship management.