LOVELY PROFESSIONAL UNIVERSITY

ACADEMIC TASK NO. 1

School of Management Faculty of Business and Applied Arts

Name of the Faculty Member: Ms. Ramandeep Kaur

Course Code: OPR 602

Course Title: Production and Operation Management

Class: MBA Section: Q1647

Max. Marks: 30 Date of Allotment: 24-01-2017

Date of Submission of Report: 20th February 2017

S. No Nature Objectives of Academic Activity

Topic Details Evaluation Parameters

Expected outcomes

Presentation -Case Based

Group To enhanceanalytical skills ofthe students

A group of 4-5 students will analyze the given case and givepresentation on the same. Topics: Toyota MotorManufacturing, Nokia Supply Chain Management, AutomatedDecision making comes of age, etc.

EvaluationCriteria: 10 marks for the written report, and 20 marks for thepresentation; Peer rating to be done

Students will gain knowledge about the concepts

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ACase Write-up

On

Automated Decision Making Comes of AgeIn

Production And Operations Management

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE

DEGREE OF

Master of Business AdministrationUNDER

Lovely Professional University, Punjab

(Session: - 2016-2018)

Submitted to:

Ms. Ramandeep Kaur

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Peer Rating

Sr.No Name Reg.No Marks

01. Diksha Kumari 11607795

02. Shashank Thakur 11601730

03. Anushka Sharma

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Contents

Sr.No Topic Page No.

01. Summary of the Case

02. Identification of Main Issues

03. Analysis Of Issues

04. Comments on Effective Solutions

05. References

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Automated Decision Making

Comes Of Age

Summary

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Identifications of main Issues and ProblemsBefore Introduction of ADM

Many early artificial intelligence applications were just solutions looking for problems, contributing little to improve organization. So, during the 1970s, managers began to address this need by employing intelligence augmentation tools that provided managers and analysts with “decision support”. The idea was for the support system to helps managers report, analyze and interpret data as opposed to actually making the business decision. Although the tools were not integrated with business applications as ERP did and they generally require skilled users to direct their use. During 1970s and 1980s, the reluctance on the part of executives to embrace decision support tools was not surprising. Also many decision support system are complicated to use and difficult to maintain. So, the basic problems faced by company before the implementation of Automatic Decision Making are-

Decision Support tools required too much time and expertise and were too idiosyncratic to be use by decision makers

The technology often existed in the form of “proofs of concept”or limited – scope prototypes.

A single technology focus prevailed in which different tools existed for structured, unstructured and semi structured decisions.

Customized tools were difficult to use.

Tools were stand alone black boxes in which data went in and decision came out , people still needed to implement the decisions.

Data were not widely available in electronic form.

After the Introduction of ADM

Automated Decision Making is however differs from prior decision support systems in several important respects like it is easier to create and manage than earlier ones, which leaned heavily on the expertise of knowledge engineers. Also the new applications do not require anyone to identify the problems or to initiate the analysis. But instead of all these, managers face certain problems with the implementation of Automated Decision Support System, such as-

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Managers still need to involved in reviewing and confirming decisions and, in exceptional cases, in making the actual decisions.

The knowledge and decision criteria used in these systems need to be highly structured , and the factors that must be taken into account must be well understood.

One of the greatest challenges with automated decision system is finding the experts who are capable of running them.

New systems can also have significant impacts on staffing requirements, particularly for less skilled and less experienced employees.

It is difficult to find out experts to oversee some of the new systems and companies still not clear from where they find tomorrow’s experts.

There is a significant likelihood that more and more companies will be affected by lawsuit challenging automated decision methods.

Legislation mandating barriers to the integration of information about individuals may also limit the usefulness of automated applications.

A final issue for many organizations is how to reach consensus on rules.

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Analysis of Issues Decision technology, artificial intelligence, data mining and the like have been talked about for so many years that many people are confused about where the basic ideas stand in terms of implementation. Different people had different perceptions at that time. Many businesses have looked to automate their processes, aiming to drive higher responsiveness and lower costs. But processes that involve high-order, judgment-based decision-making are usually left to managers that make decisions by interpreting the data themselves. So, the issues arises during 1970 and 1980s resolved with the introduction of Automated Decision System. It comes with different concept in companies and managers use this system to resolve their decision making problems. The key solutions which Automated Decision Provides

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Comments on Effective Solutions

We believe that automated decision-making applications will continue toproliferate and will have substantial implications for organizations and the people who work in them. Individuals, for example, should factor these systems into their career strategies.

 In the future many industries will also find that third-party industry applications (incorporating prepackaged rule bases) will be available to all competitors. Because the Companies will no longer need to develop their own proprietary decision systems. Software vendors already offer decision applications packaged with a rule base in insurance,and health care institutions are beginningto organize to provide it as well. That step Brings revolution to the ever industry and software consultancy provide every software according to the need of the industries and what they want.

If we talk about the solution that There will be plenty of opportunities forexperts who can work with computers,but there may be limited opportunitiesto become an expert. Where decisions have been automated, companies willhave to explicitly train experts or transfer knowledge from others before theyleave; experts won’t be developed in the course of daily work.

It has also a measure draw back as we know that automated decision works on a particular program or a software and now a days the corprate enviroment is very dynamic due to this government regulatory also there and that gives companies to industrilize their decision processes as a way to ensurecompliance,this brave new world has been a long time in coming, but it is clearly upon us now. High –performance businesses or they won’t be high performance for long. There is simply too much data and too many decision to be made for organizations to pass on acquring and using this technology.     

So now we can understand that era of automated  decision making was not up to the mark because it have some limitations as well .

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It is going to change the scenario of employment of the Automation is the only career option that will be in the driver’s seat going forward. Automation has already started stealing the jobs. So, if you can’t beat them, then join them. Become an automation professional yourself while the market is hot and very less competition is ther. Because Automated Decision Making is now becoming more and more possible because of adavcement in technology for analysis and more skills being available in implementing automation.

With platforms for RPA being available and data preparation and analysis being already automated, we are looking at scenarios where machines will be making more and more business decisions

There is no doubt that Indians have already started to lose jobs due to automaton decisison making Right now we have one documented and public case of job reduction from infosys. Similar things are going on in other companies as well though the information is not yet public.

We shall be seeing more and more examples coming out in open sooner than later, where the true impact of automation will be more scary than ever. As automation experts we believe that in 2017 we shall see the job loss figures cross into 6 figures.

It is easy to close our eyes to this phenomenon but we will not be able to deny its impact in the very near future.

The only way today to survive is to be an automator rather than being the automated.

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Referenceshttp://www.dataversity.net/when-automated-decision-making-needs-human-oversight/

http://www.oliverwyman.com/our-expertise/insights/2016/aug/automated-decision-making.html

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