Simplicable Guide

7 Types of Decision Analysis

John Spacey, July 28, 2018

Decision analysis is the process of making decisions based on research and systematic modeling of tradeoffs. This is often based on the development of quantitative measurements of opportunity and risk. Decision analysis may also require human judgement and is not necessarily completely number driven. The following are the basic types of decision analysis.

Research

Developing information that is relevant to a decision. This includes analysis of the problem space, solution space and the identification of risks.

Business Analysis	Experiments
Problem Space	Risk Identification
Strategic Drivers	Thought Experiment

Risk Analysis

Analysis of the probability and impact of identified risks. Risk analysis may also investigate treatment that can be used to reduce risk. In some cases, risk triggers and moment of risk may be modeled.

Moment Of Risk	Probability-Impact Matrix
Risk Analysis	Risk Impact
Risk Probability	Risk Treatment
Risk Triggers	Risk-Reward Ratio

Decision Modeling

Modeling the structure of a decision such as a scoring system for options or identification of primary tradeoffs for a decision.

Choice Architecture	Criteria
Decision Balance Sheet	Decision Criteria
Decision Mapping	Decision Matrix
Decision Modelling	Decision Tree
Gap Analysis	SWOT Analysis

Systems

The use of software to process, calculate and visualize decision related data. In some cases, efforts are made to automate or semi-automate decisions using algorithms or artificial intelligence. For example, a credit score may be calculated to automate the decision to accept or reject a credit application.

Algorithms	Analytics
Artificial Intelligence	Data Processing
Decision Support	Systems

Design

The design of solutions. This can be a creative process that begins by freely brainstorming ideas that progresses to a more systematic process of evaluation.

Brainstorming	Creativity
Design Thinking	Logic
Rational Thought	Strategy

Decision Making

The process of making a decision based on tradeoffs such as opportunity and risk in the context of your goals and risk tolerance. This can be a fully qualitative process of scoring. More commonly it is a call that is made by a talented individual such as a leader, architect or designer.

Consensus Building	Decision Making
Risk Tolerance	Sanity Check
Strategic Dominance	Tradeoffs

Decision Improvement

The process of evaluating the results of past decisions to improve decision making processes and analysis practices.

Counterfactual Thinking	Decision Quality
Knowledge Of Results	Lessons Learned

Overview: Decision Analysis
Type	Decision Making
Definition	The process of making decisions based on research and systematic modeling of tradeoffs.
Related Concepts	Decision Making » Tradeoffs » Risk » Research » Risk Analysis » Risk Treatments »